Northrop’s ’91 Profit Down 4.5% Despite Strong Quarter

Northrop Corp., struggling with declining orders for the B-2 bomber and other defense systems, said its profits fell nearly $10 million during 1991, down 4.5% from 1990.

The Los Angeles-based aerospace giant reported net income of $200.8 million, or $4.26 per share, for the year, down from $210.4 million, or $4.48 per share, in 1990.

The adoption of new industry-wide accounting techniques was responsible for $4 million of the decline, the company said Wednesday.

The earnings came on 1991 sales of $5.69 billion, up slightly from $5.49 billion in 1990.

On a more positive note, Northrop reported earnings of $158.5 million, or $3.36 per share, during the fourth quarter of 1991, compared to $42.7 million, or 91 cents per share, during the same period of 1990.

Further stressing positive developments, Northrop said it reduced debt by 55% during 1991 to $347 million and reported a business backlog of a record $8.6 billion as of Dec. 31, 1991, a 28% increase of the backlog of a year earlier.

The company also reported the highest operating margin, $351.5 million for 1991, in company history.