Litton Profits Plunge 36% in Quarter, Half
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Litton Industries said Wednesday that earnings were off 36% for the second quarter and first half because of weak oil prices, intense competition in the microwave oven business and heavy interest expenses.
For the three months ended Jan. 31, the high-technology concern netted $47 million on sales of $1.17 billion, compared to the year-earlier period, when it earned $74.2 million on revenue of $1.12 billion.
For the first half of its fiscal year, Beverly Hills-based Litton earned $90.7 million on revenue of $2.27 billion, compared to a year earlier, when it earned $141.9 million on sales of $2.29 billion.
Litton blamed the earnings decline on “depressed energy markets” and “extreme pricing pressures in the consumer microwave oven industry.”
It also noted that it is paying $37 million per quarter in interest on the notes it issued to finance its stock buy-back.
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