Friday, January 23, 2009

Northrop to write off $3B

LOS ANGELES, Calif. - Northrop Grumman Corp. will record a fourth quarter loss of $3 billion to $3.4 billion, due to a drop in the book value of its shipbuilding and space technology activities. The company determined that the book value exceeded the fair value. As a result of this charge, the company will report a net loss for the fourth quarter and 2008 when it issues its report Feb. 3. (Source: Northrop Grumman, 01/22/09) Gulf Coast note: Northrop has a large presence in the Gulf Coast, including shipyards and an unmanned aerial systems plant.