Things Are Steady, Northrop Grumman Tells Investors
In meetings with investors this week, Northrop Grumman will inform
them it is holding steady to the financial guidance issued earlier
this year.
The 2003 projection is for $3.80 to $4.20 earnings per share,
with segment operating margin around 7%. Sales are expected to
come in at $25 billion to $26 billion.
Cash from operations is expected to be between $1.1 billion and
$1.3 billion, but the actual amount will be much lower since Northrop
Grumman faces a sizeable tax bill on B-2 profits. The U.S. government
allowed the company to defer the tax payments until the completion
of the stealth bomber program.
Sales in 2004 are expected to grow for the aerospace, electronics
and shipbuilding defense supplier. The company is projecting sales
around $28 to $29 billion, with cash from operations increasing
to $1.5 billion. Operating margin will remain around 7%.
A more modest growth in sales in currently being estimated for
2005, with an increase to $30 billion to $32 billion. Cash from
operations would increase to $2 billion and achieve further growth
beyond that.
The company acknowledges that the reality could be very different,
with the success of integrating TRW's defense operations into
Northrop Grumman a key factor.
