Shipping, shipbuilding, offshore news

April 17, 2002

Shipbuilding pays off for Northrop Grumman
First quarter 2002 results announced by Northrop Grumman indicate that its decision to acquire a substantial chunk of the U.S. shipbuilding industry is paying off.

First quarter 2002 net income was $149 million, or $1.27 per share, compared with net income of $132 million, or $1.81 per share, for the same period of 2001.The comparable per share decline reflects a substantial decrease in pension income and increases in interest expense and in the number of shares outstanding. On an economic earnings basis, the company reported increased earnings of $170 million, or $1.45 per share, compared with $101 million, or $1.39 per share, for the same period of 2001.

"We are very pleased with our first quarter results which reflect the contributions of last year's three strategic acquisitions, coupled with strong organic growth and earnings," stated chairman and CEO Kent Kresa.

Two of those acquisitions are Litton Industries, Inc. (Litton), acquired in the second quarter of 2001 and Newport News Shipbuilding, Inc. (Newport News) acquired in the fourth quarter of 2001.

Ships, which includes the financial results of the Newport News and Ship Systems sectors, generated sales of $1.1 billion and operating margin of $79 million for the first quarter of 2002. Ships reported contract acquisitions of $1.8 billion resulting from the funding of Virginia-class submarines and refueling and overhaul of the carrier USS Enterprise.