Page 42: of Maritime Reporter Magazine (March 1997)

(Continued from page 47) semiconductor industry.

The company's operating margin for 1996 reached an all-time high of $658 million, up 23 percent from last year's previous record of $536 million. Northrop Grumman's sales for 1996 were a record $8.1 billion, up 18 percent from the $6.8 billion registered in 1995. The company's business backlog at the close of the year stood at $12.4 bil- lion, up 25 percent from the $9.9 billion reported at the end of 1995.

The company's results for 1996 include 10 months of operating

Westinghouse Electric

Corporation, which Northrop

Grumman acquired on March 1, 1996, and now operates as its

Electronic Sensors and Systems

Division (ESSD). "The record operating margin achieved in 1996 reflects the suc- cess we've had in integrating busi- nesses acquired over the past sev- eral years," said Kent Kresa,

Northrop Grumman chairman, president and CEO. "The synergy we've achieved, coupled with our focus on streamlining operations

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Circle 327 on Reader Service Card and an adherence to shareholder value objectives, are expected to lead to even better operational results in the years ahead," he added.

Mr. Kresa said he was "comfort- able with an earnings per share consensus for 1997 on the order of $5.80." He added that the compa- ny's sales for 1997 will be about $8.4 billion, on track with the com- pany's previously announced fore- cast of achieving $10 billion in sales by the year 2000.

Regarding the company's bid for

Hughes Electronics' defense busi- ness, Mr. Kresa reiterated his position that the Hughes acquisi- tion was "not essential" and that while Hughes "would have been a good fit," the company was not willing to make an offer "at a price that would have taken value away from our shareholders."

Avondale Announces 1996

Financial Results

Avondale Industries, Inc. report- ed net income of $30.8 million, or $2.13 per share, for 1996 versus $28.2 million, or $1.95 per share in 1995. Net sales for 1996 totaled $624.9 million, up from $576.3 mil- lion in the prior year. Net income for the 1996 and 1995 years includ- ed income tax benefits of $9 mil- lion, or $.62 per share and $13 mil- lion, or $.90 per share, respective- ly- "The report of record financial results for 1996 caps a milestone year for Avondale," said Albert L.

Bossier, chairman and CEO. "Our success in generating higher operating efficiencies and increased earnings was coupled with the award of a $1.5 billion contract including options to

Avondale in December 1996 as the prime contractor for the initial ship in the Navy's major LPD-17 shipbuilding program ... The capi- tal we have invested to modernize our shipyard and the productivity programs we have implemented throughout the organization have led to these tangible results. We remain focused on extending this positive momentum and are actively seeking to participate in additional Navy programs as well as in commercial shipbuilding pro- jects," added the yard executive. 50 Maritime Reporter & Engineering News