Hurricane Katrina keeps Northrop Grumman 3Q income flat at $288M

New Orleans CityBusiness, Oct 25, 2005 by CityBusiness Staff Report

Northrop Grumman Corp. reported third-quarter 2005 income from continuing operations of $288 million, or 80 cents per diluted share, compared with $291 million, or 80 cents per diluted share, for the same period of 2004. Third-quarter 2005 sales were unchanged at $7.4 billion.Northrop Grumman's sales and earnings were hurt by hurricane damage to the company's Ship Systems facilities in Avondale with its operating margin reduced by $165 million and earnings trimmed by 30 cents per diluted share.

The hurricane- related impacts were partially offset by the sale of 2.1 million shares of Endwave Corp common stock, which resulted in a pre-tax gain of $81 million, or 15 cents per diluted share.We again demonstrated our ability to produce higher sales, margin and cash across our businesses, said Ronald Sugar, Northrop Grumman chairman, chief executive officer and president. Although Hurricane Katrina impacted Ships, sales and operating margin rose in every other business, and we've generated $2 billion in operating cash year to date, 20 percent more than last year.