Litton Net Profits Fall, but Operating Net Increases

Litton Industries Inc. on Tuesday reported lower net income but higher operating income in its fiscal second quarter ended Jan. 31. Sales were virtually flat in the quarter, the company said.

The high-technology conglomerate and defense contractor, based in Beverly Hills, said net income fell to $74.2 million in the second quarter, down 31% from the $107.8 million earned a year ago.

However, the company pointed out that fiscal 1984 figures were skewed by one-time gains from discontinued operations of $40.5 million in the quarter.

As a result, on an operating basis, Litton’s income rose 10% in the second quarter. (Net and operating income figures in the 1985 second quarter were identical, the company said.)

Sales in the second quarter were $1.1 billion, the same as the second quarter of fiscal 1984.

Chairman Fred W. O’Green said the electronic and electrical products group posted lower results, but improved earnings were shown by Litton’s advanced electronic systems, shipbuilding, industrial systems and service business segments.

Litton has pared some business operations this year, selling six of its cutting-tool and metal-products divisions. It has also signed a letter of intent to sell its Sweda International division, which makes electronic cash registers and sales terminals, and its Itek Graphic Systems subsidiary, which makes graphic-arts equipment and printing supplies.