Northrop Grumman Reports 4Q IT Services Sales Of $1.2 Billion

In the year-ago quarter, the Los Angeles-based company reported an adjusted net income of $195 million, or $1.93 per share.

In its information technology sector, Northrop Grumman reported fourth-quarter 2002 sales of $1.2 billion, compared with sales of $1.1 billion for the comparable period in 2001. The increase was attributed mainly to additional federal government wins.

Last month, Northrop Grumman issued approximately 70 million shares of common stock in conjunction with its acquisition of rival TRW. Company executives said in a statement that the current report does not include TRW's financial results.

For the fourth quarter, Northrop Grumman's overall sales increased 17 percent to $4.8 billion from $4.1 billion in the comparable 2001 period. The increase is due primarily to the inclusion of the full-quarter results for Newport News, which was acquired on Nov. 29, 2001.

"Together with the former TRW defense businesses, which completed one of their most impressive years ever, we are well-positioned to benefit from increasing defense budgets and homeland security initiatives," said Kent Kresa, Northrop Grumman chairman and CEO, in a statement.

For the year ended Dec. 31, 2002, revenue increased 32 percent to $17.2 billion from $13 billion in 2001, due to the contributions of companies acquired in 2001. Annual income totaled $697 million, compared with the $642 million Northrop Grumman reported at the end of 2001.

Net income for 2002 was $64 million, which includes a previously reported $432 million charge for the cumulative effect of an accounting change related to impairment of goodwill at the beginning of 2002.

Earnings per share from continuing operations for 2002 totaled $5.72, compared with $7.32 at the end of 2001.

After reviewing guidelines set forth by the Securities and Exchange Commission, Northrop Grumman said it will report in the future financial results only according to Generally Accepted Accounting Principles.

Also, the company will no longer provide guidance using the pro forma metrics of Earnings Before Interest, Taxes, Depreciation, Amortization and Pension.