Northrop Grumman Warns of Earnings Fall

Northrop Grumman Corp. said its earnings for 2001 will be as much as $1 a share below some analysts’ forecasts because of a projected decline in pension income. The federal government allows Northrop and other defense contractors to recognize gains from its pension fund as income. Los Angeles-based Northrop expects earnings of $8.70 to $9 a share next year, with pension income at about $460 million, or $60 million less than previously forecast, Chief Financial Officer Richard Waugh said at a conference. Analysts had anticipated earnings in the range of $9.10 to $10 a share. Pension income accounts for about half of the defense contractor’s profit.