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Article: Northrop earnings drop as R&D revenues wane; aerospace giant cites the B-2, old fixed-price contracts. (company profile)
- Article from:
- Los Angeles Business Journal
- Article date:
- October 23, 1989
- Author:
CopyrightCOPYRIGHT 1989 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Northrop earnings drop as R&D revenues wane
Hurt by higher than anticipated costs on fixed-price contracts, aerospace giant Northrop Corp. last week reported third-quarter earnings fell 25 percent.
The company blamed the decrease on lower revenue in the research and development phase of long-term programs, including the B-2 advance technology bomber, which has passed the peak of its development phase and is now in initial production.
Higher costs on fix-priced research and development contracts undertaken years ago reduced Northrop's $102 million third-quarter operating profit by $23 million.
Revenues, meanwhile, fell 8.2 percent during ...