Northrop Grumman, reporting lower 1998 sales of $8.9 billion, expects revenues to remain at the same level for the next two years. Lower sales at its commercial aircraft unit are projected to hold the company's revenues at around $9 billion for 1999 and 2000, after which it expects to see a return to strong growth.
The blocked merger with Lockheed Martin last year, resulted in pretax charges of $186 million, which helped drive net income down to $214 million, from $407 million in 1997. A pre-tax charge of $104 million on the Boeing 747 fuselage programme also contributed to the falling profit.
While projecting flat revenues for the next two years, Northrop Grumman expects profitability to improve. Based on an anticipated global economic improvement and increases in defence procurement, "...we expect double-digit earnings growth for 2000 and beyond," says chief executive Kent Kresa.
"We remain confident in the strategic rationale underlying our business transformation," says the Northrop Grumman boss.
Source: Flight International