Litton Industries' Quarterly Profit Tops $28 Million

From Associated Press

Litton Industries Inc. on Wednesday reported a profit of $28.6 million, or 60 cents a share, for its fiscal second quarter, citing lower interest costs and higher margins during the period.

The results contrast with a loss of $151.3 million, or $3.32 a share, a year earlier, due primarily to costs associated with spinning off non-defense businesses into a separate company.

Woodland Hills-based Litton builds electronics systems, defense systems and warships.

Earnings from continuing operations were up 22%, though revenue fell 12%, to $694 million from $804 million.

Litton Chief Executive John M. Leonis said profit margins were especially improved in advanced electronics, where cost-cutting measures have shown results. Interest expenses fell due to Litton's decision in July to pay high-interest debt off early.

Leonis said revenue has fallen along with government military spending. Litton plans to reverse that decline through acquisitions, he said.

In January, Litton completed the purchase of Teledyne's Electronic Systems division, which had 1994 revenue of more than $150 million. In February, it agreed to buy the Electro-Optical Systems division of Imo Industries, which had 1994 sales of about $110 million.

For its first half, Litton earned $60.1 million, or $1.28 per share, on sales of $1.48 billion. A year earlier, it lost $116.3 million, or $2.56 a share, on sales of $1.64 billion.

Litton's stock price fell $1 to $35.50 on Wednesday on the New York Stock Exchange.

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