LOS ANGELES, Oct. 25, 2001 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) announced today that it is providing additional financial information for 2002. Due to technical problems, the company's 2001 third quarter conference call yesterday was interrupted before its scheduled completion. As a result, and in order to insure uniform and consistent understanding of the company's financial prospects, the company is providing expanded details concerning its 2002 financial outlook:
-- As a percentage of company sales, total sector operating profit is expected to be in the 8.5 to 9 percent range, before amortization of goodwill and purchased intangibles. -- Deferred state taxes are expected to be lower than 2001. -- The expected tax rate for calculating 2002 economic earnings per share is approximately 32 percent. -- Interest income is expected to be $14 million lower than 2001, due to the early retirement of a $148 million note in the 2001 third quarter.
Consistent with its previous guidance of double-digit economic earnings per share growth for 2002, the company stated that 2002 economic earnings are expected to range between $6.85-$7.25 per share, on approximately 86 million shares. This 2002 guidance does not include any potential impact from the possible termination of the Project America program in its Ship Systems sector.
Gaston Kent, corporate vice president, Investor Relations, will conduct a conference call today at 4:30 EDT, to discuss only the above financial guidance. To participate in the call, dial (303) 267-1002, passcode 1304997, and ask for the Northrop Grumman conference call.
Northrop Grumman Corporation is a $15 billion, global aerospace and defense company with its worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and non-nuclear shipbuilding and systems. With 80,000 employees and operations in 44 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 the company believes to be within the definition in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties. Such "forward-looking" information includes the statements above as to future impacts on revenues and earnings. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the company's control. These include the company's ability to successfully integrate the operations of Litton, assumptions with respect to future revenues, expected program performance and cash flows, the outcome of contingencies including litigation, environmental remediation, divestitures of businesses, and anticipated costs of capital investments. The company'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, the company's successful performance of internal plans; government customers' budgetary restraints; 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 and information technology; as well as other economic, political and technological risks and uncertainties and other risk factors set out in the company's filings from time to time with the Securities and Exchange Commission, including, without limitation, the company's reports on Form 10-K and Form 10-Q.
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CONTACT: Northrop Grumman Corporation Frank Moore, Media (310) 201-3335 Gaston Kent, Investors (310) 201-3423