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 Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Navy

Admiral on U.S. Navy & Asia Pacific Re-balancing Act

The commander of U.S. Pacific Command has briefed Pentagon reporters, discussing the U.S. rebalance to the Asia-Pacific region, successful engagement with partners

Hellfire Missile Firing a First for New Navy Helicopters

The Royal Australian Navy’s newest maritime combat helicopter, the MH-60R Seahawk ‘Romeo’, has successfully fired its first ‘Hellfire’ missile in the United States.

BAE Systems Awarded Two Navy Contract Modifications

The US Department of Defense informs it has awarded separate contracts to BAE Systems in Jacksonville and in Norfolk for ship repairs and modifications as follows: 1.

Finance

Asia Dry Bulk Capesize Rates Stay Flat

Rates for capesize bulk carriers on key Asian routes are set to remain in the doldrums next week, staying flat or gaining just a few cents as an oversupply of ships weighs on cargo availability,

ISC Profit Slip in Q2 2014 but Pay Dividend

International Shipholding Corporation (ISC) has announced financial results for the quarter ended June 30, 2014, summarized here: Net Loss he Company reported a net loss of $664,

Hornbeck Offshore Ride High on Q2 2014 Results

Hornbeck Offshore Services, Inc. has announced its financial results for the second quarter ended June 30, 2014.  Following are highlights for this period and excerpts

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1282 sec (8 req/sec)