Northrop May Not See Carrier Profit, Navy Says

Northrop Grumman Corp., the world’s largest builder of warships, may not make a profit on the latest U.S. nuclear aircraft carrier because of cost overruns, a Navy official said.

Century City-based Northrop must pay all costs for the carrier, called the CVN- 77, above $3.8 billion. John J. Young Jr., assistant secretary of the Navy, said the costs were now about $120 million below that level, with three years remaining before the promised delivery in March 2008, eight months behind schedule.

The carrier is only half-finished so “there is a very good chance” its cost will reach $3.8 billion, Young said.

Northrop doesn’t accept the Navy’s figures on the CVN-77, said Mike Petters, president of Northrop Grumman Newport News shipyard in Newport News, Va.