LOS ANGELES, May 13, 2002 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) said today that it will confirm previously announced financial guidance when it presents May 14 at the Eighth Annual Aerospace and Defense Finance Conference co-sponsored by Credit Suisse First Boston and Aviation Week and Space Technology. The presentation by Kent Kresa, Northrop Grumman's chairman and chief executive officer, will be webcast at www.northropgrumman.com beginning at 4:45 p.m. EDT.
The company's 2002 Annual Meeting of Shareholders will be held in Los Angeles May 15 and will be webcast at www.northropgrumman.com beginning at 1 p.m. EDT.
The company will confirm the following guidance: Sales in 2002 of $17.5 billion to $18 billion Sales in 2003 of $19.5 billion to $20 billion Sales in 2004 of approximately $22 billion Segment 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 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.
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, acquisitions and 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, electronic components 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.
Northrop Grumman filed a registration statement on Form S-4 (File No. 333-83672) and a tender offer statement on Schedule TO with the SEC on March 4, 2002, with respect to its offer to exchange all outstanding shares of TRW capital stock for Northrop Grumman stock. These documents contain important information. TRW shareholders should read these documents and any amendments or supplements thereto before making any decision regarding the offer to exchange. Copies of such documents may be obtained without charge at the SEC's website at www.sec.gov or from D.F. King & Co., Inc. the information agent for the offer to exchange, at 800-755-7250.
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CONTACT: Frank Moore (Media) (310) 201-3335 Gaston Kent (Investors) (310) 201-3423