Northrop Grumman Provides Additional Financial Guidance For 2002

Northrop Grumman Corporation announced that it is providing additional financial information for 2002. Due to technical problems, the 2001 third quarter conference call yesterday was interrupted before its scheduled completion. Northrop Grumman 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 2002 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, they 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 Ships Systems sector.