Despite Low Earnings, Litton Surpasses NYSE Forecasts

Wednesday, December 06, 2000
Military shipbuilder Litton Industries Inc. on Wednesday reported lower fiscal first-quarter earnings, but surpassed Wall Street forecasts due to strength in its recently refocused core operations.

Litton, the largest builder of non-nuclear ships for the U.S. Navy, reported a net profit of $44.9 million, or $.97 per share, for the quarter ended Oct. 31, down from $49.9 million, or $1.07 a share, a year earlier. Analysts had expected earnings of $.95 a share, according to tracking firm First Call/Thomson Financial.

Excluding discontinued operations, Litton posted earnings of $34.4 million, or $.74 per share, versus $36.3 million, or $.78 per share, a year ago.

Total sales and service revenues reached $1.08 billion in the quarter, up from $999.9 million in the same quarter last year.

"Litton's first-quarter financial results met our previously announced targets," a top company official said. "Although the quarter's results were somewhat lower than last year's first quarter due to a changing sales mix related to new product and program introductions, several positive trends in our refocused core businesses were reaffirmed." In November, the company announced plans to sell its defense electronics unit, which accounted for about 28 percent of annual revenues. The planned sale was part of a strategic move to focus on high-growth markets such as telecommunications, broadband communications, information security and shipbuilding.

Litton's electronic components and materials segment reported a 25 percent increase in sales and 34 percent increase in operating profit for the quarter on strong demand from telecommunications and networking customers.

The ship systems group reported operating profit of $45.7 million on revenue of $544 million, compared with profit of $58.6 million on revenue of $472 million. The segment's operating profit margin was 8.4 percent for the quarter, meeting company targets, versus 12.4 percent a year ago. The increasing mix of lead ship activity on double-hulled Polar tankers and commercial cruise ships hurt the segment's margin, Litton said, adding that future performance would be determined after lead ship testing and evaluation during upcoming sea trials.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Navy

Canadian Navy Frigate Refit Program Completed

Seaspan joined Harjit S. Sajjan, Canada’s Minister of National Defense, at an official ceremony today to celebrate the completion of the Halifax-Class Modernization/Frigate

This Day In Naval History: April 29

1814 - American sloop USS Peacock and HMS Epervier engage in battle. Peacock takes two 32-pound shots in her fore-yard with the first exchange, but her return broadside

How France Sank Japan's Sub Dream

Ousting of Japan ally PM Abbott opened door to rivals; Tokyo slow to respond to new competitive process. In 2014, a blossoming friendship between Australian

Finance

MARAD: $5 Mln Available for Marine Highway Projects

The Maritime Administration (MARAD) has announced the availability of $5 million in Federal funding to expand marine highway service by creating new or expanding

Baltic Index Down on Lower Capesize, Panamax Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, slipped on Friday, as demand for capesize and panamax vessels fell.

Oil Rally is Not Just About Hedge Funds: Kemp

Oil prices are becoming dangerously overheated as speculators anticipate a rebalancing of supply and demand that has barely started, according to many oil analysts.

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0872 sec (11 req/sec)