Northrop Profit Falls Slightly but Tops Estimates
Northrop Grumman Corp., the fifth-biggest U.S. defense contractor and maker of the B-2 bomber, said Wednesday that its second-quarter profit fell 3.4%, though that still beat expectations as the company got a boost from pension income.
Net income was $113 million, or $1.64 a share, compared with profit from operations of $117 million, or $1.69, a year earlier. The results beat the $1.58 average estimate of analysts polled by First Call Corp. Sales rose 6.3% to $2.27 billion from $2.14 billion.
It was the third consecutive quarter of lower profit for Los Angeles-based Northrop. Chairman Kent Kresa has faced declining overseas sales and delays in key weapons programs since the Defense Department blocked his plan to sell the company to Lockheed Martin Corp. last year. Northrop’s stock has dropped 20% since then. Northrop shares rose $1.81 to close at $74.75 on the New York Stock Exchange.
In the year-earlier quarter, a charge of $24 million, or 35 cents a share, for plant closings and costs related to Lockheed’s proposed acquisition and certain programs resulted in net income of $93 million, or $1.34 a share.
At a Glance
Other earnings, excluding one-time gains and charges unless noted:
* Santa Monica-based video game maker Activision Inc. said its fiscal first-quarter loss widened to $4.36 million, or 19 cents per share, compared with a loss of $3.74 million, or 17 cents, a year earlier. Revenue climbed nearly 37% to $84.1 million from $61.5 million on strong sales of titles such as “A Bug’s Life” and “Tarzan” for Nintendo game systems and “Quake II” for PCs.
* Arden Realty, a Los Angeles-based office real estate investment trust, reported second-quarter profit of $24.7 million, or 39 cents per share, compared with $23.6 million, or 38 cents, a year ago. Revenue rose to $83.4 million from $71.2 million.
* Beverly Hills-based Hilton Hotels Corp.’s second-quarter profit rose 1.5% as the fifth-largest U.S. hotel company bought new properties that boosted its earnings. Profit from continuing operations rose to $66 million, or 25 cents a share, from $65 million, or 25 cents, in the year-ago quarter. Earnings matched the 25-cent average estimate of analysts. Revenue rose 18% to $539 million from $457 million.
* Sylmar-based MiniMed Inc. reported second-quarter net income of $4.9 million, or 16 cents per share, compared with $2.7 million, or 10 cents, last year. Revenue rose to $49.1 million from $31.8 million.
* Oakley Inc., the Foothill Ranch-based eye-wear retailer, reported second-quarter net income of $10.6 million, or 15 cents per share, compared with $11.2 million, or 16 cents, last year. Sales rose to $72.1 million from $70 million.
* Woodland Hills-based 20th Century Industries reported second-quarter net income of $32.9 million, or 38 cents per share, on revenue of $211.8 million. That compares with $40.2 million, or 49 cents, on revenue of $217.8 million a year ago.
* US Search.com Inc., an Internet-based provider of public-records information, posted a second-quarter loss of $7.5 million, or 75 cents per share, compared with a loss of $935,000, or 10 cents, a year ago. The Beverly Hills-based company’s revenue rose to $3.9 million from $2.4 million.
MORE EARNINGS: C4, C9
