Northrop '09 profit to exceed forecast

Northrop Grumman Corp., the world’s largest warship builder, said profit rose 47 percent after year- ago results were hurt by costs to correct work performed on a U.S. Navy ship. Full-year profit will exceed the company’s February forecast.

Net income beat analysts’ estimates, climbing to $389 million, or $1.17 a share, from $264 million, or 76 cents, a year earlier, the Los Angeles-based company said in a statement today. Sales increased 7.7 percent to $8.32 billion.

Northrop delivered the amphibious-assault ship Makin Island this month, about four months later than planned. Earnings in the year-earlier quarter were reduced by $326 million after the company had to replace wiring done by replacement crews in the wake of Hurricane Katrina in 2005.

The average of 18 analysts’ estimates compiled by Bloomberg was for earnings of $1.08 a share. Analysts projected sales to rise to $8 billion from $7.72 billion.

The company now forecasts 2009 earnings per share from continuing operations of $4.65 to $4.90, 15 cents a share higher than the previous range.

Northrop rose 52 cents to $48.40 at 8:01 a.m., before the regular open of New York Stock Exchange composite trading. The stock had lost 33 percent in the past 12 months.

Lockheed Martin Corp., the world’s largest defense company, yesterday said first-quarter profit fell 8.8 percent to $666 million as rising pension costs drained revenue from higher sales of computer services and defense electronics.