LOS ANGELES, Aug. 20, 2003 -- Northrop Grumman Corporation's (NYSE: NOC) board of directors today approved a share repurchase program of up to $700 million of its outstanding common stock and declared quarterly dividends on its common and preferred stock.
"Today's decision reflects our high degree of confidence in the company's operations, financial performance and outlook," said Ronald D. Sugar, Northrop Grumman's chief executive officer and president. "The repurchase program, combined with maintaining a competitive dividend payout, is part of the company's strategy of using our strong cash flow to enhance shareholder value. The strategy also includes our commitment to improving our credit profile and retaining financial flexibility."
Share purchases will take place at management's discretion from time to time, depending on market conditions, in the open market and in privately negotiated transactions over the next 18 months. The company will primarily use cash from operations to finance the repurchase. As of July 31, 2003, Northrop Grumman had approximately 183 million shares outstanding.
The board declared a quarterly dividend of 40 cents per share on Northrop Grumman common stock, payable Sept. 13, 2003, to shareholders of record Sept. 3, 2003. The board also declared a dividend of $1.75 per share on the company's Series B convertible preferred stock, payable Oct. 15, 2003, to shareholders of record Oct. 3, 2003.
Northrop Grumman Corporation is a $25 billion global defense company, headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With approximately 120,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.
Note: Certain statements and assumptions in this release contain or are based on "forward-looking" information (that Northrop Grumman believes to be within the definition in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties, and include, among others, statements in the future tense, and all statements accompanied by terms such as "project," "expect," "estimate," "assume," "guidance" or variations thereof. This information reflects the company's best estimates when made, but the company expressly disclaims any duty to update this information if new data becomes available or estimates change after the date of this release.
Such "forward-looking" information is based on numerous assumptions and uncertainties, many of which are outside Northrop Grumman's control. These include Northrop Grumman's ability to successfully integrate its acquisitions including TRW, to realize the preliminary estimates for accounting conformance and purchase accounting valuations for TRW which will be finalized in the 2003 fourth quarter and which may materially vary from these estimates, assumptions with respect to future revenues, expected program performance and cash flows, returns on pension plan assets and variability of pension actuarial and related assumptions, the outcome of litigation and appeals, environmental remediation, divestitures of businesses, successful reduction of debt, successful negotiation of contracts with labor unions, effective tax rates and timing and amounts of tax payments, and anticipated costs of capital investments, among other things. Northrop Grumman's operations are subject to various additional risks and uncertainties resulting from its position as a supplier, either directly or as subcontractor or team member, to the U.S. Government and its agencies as well as to foreign governments and agencies; actual outcomes are dependent upon factors, including, without limitation, Northrop Grumman's successful performance of internal plans; government customers' budgetary constraints; customer changes in short-range and long-range plans; domestic and international competition in both the defense and commercial areas; product performance; continued development and acceptance of new products; performance issues with key suppliers and subcontractors; government import and export policies; acquisition or termination of government contracts; the outcome of political and legal processes; legal, financial, and governmental risks related to international transactions and global needs for military aircraft, military and civilian electronic systems and support, information technology; naval vessels, space systems and related technologies, as well as other economic, political and technological risks and uncertainties and other risk factors set out in Northrop Grumman's filings from time to time with the Securities and Exchange Commission, including, without limitation, Northrop Grumman reports on Form 10-K and Form 10-Q.
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