Northrop’s profit increases 62%

Northrop Grumman Corp. said Wednesday that third-quarter profit rose 62% as its Gulf Coast shipyards recovered from a 2005 hurricane and acquisitions lifted sales. It also boosted its profit forecast for the year.

Net income increased to $489 million, or $1.41 a share, from $302 million, or 86 cents, a year earlier, Century City-based Northrop said. Sales rose 6.7% to $7.93 billion.

Analysts surveyed by Bloomberg had expected profit to rise to $1.27 a share. Sales were forecast to climb 6% to $7.91 billion.

Sales growth was the fastest since the fourth quarter of 2004 and was led by a 19% surge at Northrop’s ship unit, which was hurt by Hurricane Katrina two years ago. Profit on ships more than doubled.

Northrop shares climbed $2.72, or 3.4%, to $82.25.

Northrop increased its forecast for 2007 earnings per share from continuing operations to about $5.10 from a July forecast of $4.90 to $5.05. It maintained its sales forecast of $31.5 billion.