Northrop Has Better Quarter
Citing improved performance across its major operations, Northrop Corp. said Wednesday that it earned $53.8 million in the third quarter, up 27% from the $42.4-million profit during the same period a year ago.
The Los Angeles-based aerospace firm also cut its net debt by $161 million during the quarter, ending with a net debt of $559 million. That compares to a peak of $1.28 billion in June, 1989. In addition, Northrop posted a record backlog of $7.24 billion, a 19% increase from a year ago--thanks almost entirely to its aircraft segment.
“This improvement in our financial position, as a result of our continuing emphasis on strengthening the way we manage our existing business, will provide us the resources to take advantage of the business opportunities we choose as we reach the mid-1990s,” company Chairman Kent Kresa said.
Kresa has yet to indicate a major new direction for the company, which lost the competition for the Air Force’s next big jet fighter program earlier this year. Its B-2 bomber program remains politically shaky.
Although the firm’s earnings came in at the high end of analysts’ expectations, Northrop shares closed at $23.875, down 50 cents in New York Stock Exchange trading Wednesday. A spokesman said he could not explain the decline, but the firm’s stock has been weak ever since the Air Force disclosed technical problems on the B-2 bomber program.
Third-quarter sales were $1.55 billion, up from $1.28 billion last year. B-2 profits offset declines in other aircraft programs. And the firm’s missile and unmanned vehicle systems operations posted strong increases in sales and operating earnings.
