Tighter Controls Boost Northrop Net 97%

Northrop Corp. earned $42.4 million on sales of $1.28 billion in the third quarter, a 97% increase over the $21.5-million profit a year ago.

Although profit in the Los Angeles-based aerospace firm’s aircraft sector was flat, performance improved significantly on several previously troubled electronics programs, interest expenses declined and pension-fund performance improved.

Sales in the quarter were up 2.5%, resulting from increased activity on the B-2 Stealth bomber and higher business volume in missiles, unmanned vehicle systems and electronic warfare equipment. But sales declined on the MX guidance business.

“Our results in the current quarter and first nine months of 1990 reflect improvements we are seeing in our major programs and tighter management controls being implemented throughout the company,” said Northrop Chairman Kent Kresa.

Electronics operating profit was $19.5 million, a turnaround from a loss of $2 million last year, when the firm took loss provisions of $15 million. The long troubled ALQ-135 electronic warfare system is meeting its schedule, the firm said.

Debt was $968 million on Sept. 30, down 21% from a year ago, accounting for the drop in interest expense. Meanwhile, a company spokesman noted that the firm’s YF-23 advanced tactical fighter has completed 11 test flights at Edwards Air Force Base.