LOS ANGELES, Feb. 12, 2002 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) said today that it intends to confirm previously announced financial guidance for 2002 and 2003, and will provide 2004 sales guidance when it meets with investors this week in New York City.
The company will present at SG Cowen's 23rd Annual Global Aerospace Conference Feb. 13 with a webcast available at www.sgcowen.com . In addition, as previously announced, Northrop Grumman will hold its annual Institutional Investor Conference Feb. 14. The company's Investor Conference will begin at 8:30 a.m. EST and will be webcast on the Investor Relations page of the company's Web site at www.northropgrumman.com .
The company will provide the following guidance: -- Sales in 2002 of $17.5 to $18 billion -- Sales in 2003 of $19.5 to $20 billion -- Sales in 2004 of approximately $22 billion -- Sector operating margin of approximately 8 percent to 8.5 percent in 2002 -- Economic earnings per share of $6.60 to $7.10 in 2002 with 10 percent to 20 percent growth expected in 2003. Economic earnings exclude the after-tax effects of pension income and the amortization of goodwill and other purchased intangibles. -- Cash generated from operations in 2002 is expected to be between $600 million and $800 million and cash available to pay down debt is expected to range between $100 million and $200 million. -- Cash from operations in 2003 is expected to be in excess of $1 billion, excluding tax payments related to the B-2 program.
Northrop Grumman Corporation is an $18 billion, global 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 nuclear and non-nuclear shipbuilding and systems. With nearly 100,000 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 its acquisitions, 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 domestic and global needs for ships, military aircraft, military and civilian electronic systems and support, information technology and other products; 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.
CONTACT: Frank Moore (Media) (310) 201-3335 Gaston Kent (Investors) (310) 201-3423