Nasdaq GlobeNewswire

Northrop Grumman Receives FTC Clearance to Close Acquisition of Orbital ATK and Updates 2018 Financial Guidance

Del
  • Combination enhances capabilities, innovation and competition in critical global security domains      
     
  • Orbital ATK to become Northrop Grumman Innovation Systems, a new, fourth business sector
     
  • Northrop Grumman now expects 2018 sales of approximately $30 billion, EPS of $16.20 to $16.45 and free cash flow1 of $2.3 to $2.6 billion

FALLS CHURCH, Va., June 05, 2018 (GLOBE NEWSWIRE) -- Northrop Grumman Corporation (NYSE:NOC) announced today that the U.S. Federal Trade Commission (FTC) has cleared Northrop Grumman's proposed acquisition of Orbital ATK Inc. The FTC's Bureau of Competition has completed its review of the merger, and the Premerger Notification Office has informed the company that the waiting period under the HSR Act has terminated, allowing the companies to complete the merger. As part of that clearance, the FTC issued a decision and order providing for solid rocket motors to be available on a non-discriminatory basis under specified circumstances and under processes defined in the order. The company expects to complete the transaction after market close tomorrow and is issuing the following updated guidance. This updated guidance assumes the completion of the transaction tomorrow.

Non-GAAP measure - see definitions at the end of this release.

Updated 2018 Guidance         

2018 financial guidance reflects the company's judgment based on the information available to the company at the time of this release. The government budget and appropriations processes can impact our customers, programs and financial results. Government budgets, appropriations, including the timing of appropriations, and the occurrence of continuing resolutions and government shutdowns can impact the company's ability to achieve 2018 guidance.

Updated 2018 guidance reaffirms Northrop Grumman stand-alone guidance provided on April 25, 2018 and reflects the expected results of Innovation Systems for the remainder of the year. Updated guidance reflects a partial year of acquisition-related purchased intangibles amortization of approximately $175 million; this estimate is subject to the completion of purchase accounting and other post-closing activities. Free cash flow guidance for 2018 also reflects an expected $250 million discretionary pension contribution.

2018 Guidance
($ in millions, except per share amounts) As of 4/25/18 As of 6/5/18
             
Sales ~27,000 ~30,000
             
Segment operating margin %1 Low - mid 11% Low - mid 11%
             
Total net FAS/CAS pension adjustment2 ~960 ~1,080
             
Unallocated corporate expenses3 ~250 ~425
             
Operating margin % ~12% High 11%
             
Net interest expense4 ~390 ~520
             
Effective tax rate % ~18% ~18%
             
Diluted EPS 15.40 - 15.65 16.20 - 16.45
             
Capital expenditures ~1,000 ~1,150
             
Free cash flow1 2,000 - 2,300 2,300 - 2,600
1 Non-GAAP measure - see definitions at the end of this release.
2 Total net FAS/CAS pension adjustment is presented as a single amount consistent with our historical presentation, and includes expected 2018 CAS pension cost of $965 million and FAS pension benefit of $115 million. In accordance with ASU No. 2017-07, $405 million of FAS (service-related) pension cost is reflected in operating income and $520 million of FAS (non-service) pension benefit is reflected below operating income. CAS pension cost continues to be recorded in operating income.
3 Includes initial estimate of approximately $175 million for approximately seven months of purchased intangibles amortization in 2018. Purchased intangibles amortization in 2019 is not expected to be ratable to 2018 due to accelerated amortization of customer-related intangibles.
4 Includes full year of net interest expense for $8.25 billion debt issued in October 2017 to finance the Orbital ATK acquisition, as well as estimated net interest for the company's remaining debt.

About Northrop Grumman

Northrop Grumman is a leading global security company providing innovative systems, products and solutions in autonomous systems, cyber, C4ISR, strike, and logistics and modernization to customers worldwide. Please visit news.northropgrumman.com and follow us on Twitter, @NGCNews, for more information.

Cautionary Statement Regarding Forward-Looking Statements
Statements in this press release, other than statements of historical fact, constitute "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "will," "anticipate," "expect," "intend," "plan," "believe," "estimate," and similar expressions generally identify these forward-looking statements. Forward-looking statements include, among other things, statements regarding the benefits and implications of the Orbital ATK acquisition. These forward-looking statements speak only as of the date when made, and Northrop Grumman undertakes no obligation to update or revise any forward-looking statements after the date of this press release except as required by applicable law. Forward-looking statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict.  Actual results may differ materially from those described or implied in these statements based on a number of factors.  A discussion of these risks and uncertainties is contained in Northrop Grumman's Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission. They include:

  • our dependence on the U.S. Government for a substantial portion of our business
  • significant delays or reductions in appropriations for our programs and U.S. Government funding more broadly
  • investigations, claims, disputes, enforcement actions and/or litigation
  • the use of estimates when accounting for our contracts and the effect of contract cost growth and/or changes in estimated contract revenues and costs
  • our exposure to additional risks as a result of our international business, including risks related to geopolitical and economic factors, laws and regulations
  • the improper conduct of employees, agents, subcontractors, suppliers, business partners or joint ventures in which we participate and the impact on our reputation, our ability to do business, and our financial position, results of operations and/or cash flows
  • cyber and other security threats or disruptions faced by us, our customers or our suppliers and other partners
  • the performance and financial viability of our subcontractors and suppliers and the availability and pricing of raw materials and components
  • changes in procurement and other laws, regulations and practices applicable to our industry, findings by the U.S. Government as to our compliance with such laws and regulations, and changes in our customers' business practices globally
  • increased competition within our markets and bid protests
  • the ability to maintain a qualified workforce
  • our ability to meet performance obligations under our contracts, including obligations that are technologically complex, require certain manufacturing expertise or are dependent on factors not wholly within our control
  • environmental matters, including unforeseen environmental costs and government and third party claims
  • natural and/or environmental disasters
  • the adequacy and availability of our insurance coverage, customer indemnifications or other liability protections
  • products and services we provide related to hazardous and high risk operations, which subject us to various environmental, regulatory, financial, reputational and other risks
  • the future investment performance of plan assets, changes in actuarial assumptions associated with our pension and other post-retirement benefit plans and legislative or other regulatory actions impacting our pension, post-retirement and health and welfare plans
  • our ability successfully to integrate the Orbital ATK business and realize fully the anticipated benefits of the acquisition, without adverse consequences
  • our ability to exploit or protect intellectual property rights
  • our ability to develop new products and technologies and maintain technologies, facilities, and equipment to win new competitions and meet the needs of our customers
  • changes in business conditions that could impact business investments and/or recorded goodwill or the value of other long-lived assets
  • unanticipated changes in our tax provisions or exposure to additional tax liabilities

Additional information regarding these risks and other important factors can be found in the section entitled "Risk Factors" in our 2017 Annual Report on Form 10-K and from time to time in our other filings with the SEC.

You are urged to consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of forward-looking statements. These forward-looking statements speak only as of the date this release is first issued or, in the case of any document incorporated by reference, the date of that document.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

This release also contains non-GAAP financial measures. A definition and discussion of these non-GAAP financial measures are included in this release.

Non-GAAP Financial Measures Disclosure:  This release contains non-GAAP (accounting principles generally accepted in the United States of America) financial measures, as defined by SEC (Securities and Exchange Commission) Regulation G and indicated by a footnote in the text of the release. Definitions for the non-GAAP measures are provided below. Other companies may define these measures differently or may utilize different non-GAAP measures.

Segment operating income:  Total earnings from our four segments, including allocated pension expense recognized under CAS, and excluding unallocated corporate items and FAS pension expense. This measure may be useful to investors and other users of our financial statements as a supplemental measure in evaluating the financial performance and operational trends of our sectors. This measure should not be considered in isolation or as an alternative to operating results presented in accordance with GAAP.

Segment operating margin rate:  Segment operating income as defined above, divided by sales. This measure may be useful to investors and other users of our financial statements as a supplemental measure in evaluating the financial performance and operational trends of our sectors. This measure should not be considered in isolation or as an alternative to operating results presented in accordance with GAAP.

Free cash flow:  Net cash provided by operating activities less capital expenditures. We use free cash flow as a key factor in our planning for, and consideration of, acquisitions, stock repurchases and the payment of dividends. This measure may be useful to investors and other users of our financial statements as a supplemental measure of our cash performance, but should not be considered in isolation, as a measure of residual cash flow available for discretionary purposes, or as an alternative to operating cash flows presented in accordance with GAAP.

Contact:                                                                     

Tim Paynter (media)
703-280-2720
timothy.paynter@ngc.com

Steve Movius (investors)
703-280-4575
steve.movius@ngc.com




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Northrop Grumman Corp. via Globenewswire

Om Nasdaq GlobeNewswire

Nasdaq GlobeNewswire
Nasdaq GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

+1 212 401 8700http://www.nasdaqomx.com

NASDAQ (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents.

Følg saker fra Nasdaq GlobeNewswire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Nasdaq GlobeNewswire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Nasdaq GlobeNewswire

Vicor Introduces 10kW Power Tablet™ AC-DC Converter16.10.2018 03:00Pressemelding

Power Tablet RFM Enables High-Density Server Racks BEIJING, Oct. 15, 2018 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) has announced a 3-phase, AC-DC converter module (“RFM”), capable of delivering 10kW of regulated 48VDC in a power tablet configuration measuring 9.4 x 5.9 x 0.6in (24 x 15 x 1.5cm). The RFM™ provides a power-factor-corrected, regulated, and isolated DC output with integrated filtering and built-in fault protection for redundant operation. The RFM can be configured to accept worldwide 3-phase AC mains from 200 to 480VAC. The low-profile power tablet design of the RFM enables unprecedented power density and thermal management flexibility. For example, four RFMs in parallel, including input-disconnect circuitry, rectification and hold-up energy storage at 48V, can supply 40kW of power within 1U of rack space. The RFM power tablet package provides adept thermal management for advanced cooling, including liquid cooling, of high-power server racks for demanding HPC a

Elite Petro & Gas, a new brand by Elite Capital & Co. Limited15.10.2018 16:15Pressemelding

LONDON, Oct. 15, 2018 (GLOBE NEWSWIRE) -- Today at Elite Petro & Gas headquarters in the City of London, Dr. Faisal Khazaal (Chairman) and Mr. George Matharu (President) announced the official launch of this new Division within Elite Capital & Co. Limited, which was setup to provide Finance, Trading and Advisory services in the global Oil and Gas markets. “Elite Petro & Gas is a Finance, Trading and Advisory firm with a focus on downstream activities in the global Oil and Gas markets. We are a results-driven business, working closely with our clients to deliver tangible solutions and outcomes.” Mr. George Matharu, President of Elite Petro & Gas, said. The oil and gas industry is facing challenging times, particularly from changes in the political landscape and increased price volatility. Understanding the nuances of working internationally, often in emerging economies and less stable regimes, is key to ensuring that business risks are appropriately managed. The Elite Petro & Gas (“EPG”

Prof. Dr. C. Oliver Kappe is awarded the 2018 IUPAC-ThalesNano Prize for Flow Chemistry15.10.2018 16:08Pressemelding

KARLSRUHE, Germany and BUDAPEST, Hungary and GRAZ, Austria, Oct. 15, 2018 (GLOBE NEWSWIRE) -- The 2018 IUPAC-ThalesNano prize has been awarded to Professor C. Oliver Kappe. The prize will be presented at the 15th International Conference on Microreaction Technology (IMRET15) in Karlsruhe on October 21, 2018. The award address will be delivered at the Flow Chemistry Europe Conference in Cambridge, UK on February 26th, 2019. The prize consists of an award of $10,000 US Dollars. Professor Kappe is Professor of Chemistry at the University of Graz (Austria) and Scientific Director for Continuous Flow Synthesis and Processing (CC Flow) at the Research Center Pharmaceutical Engineering GmbH (RCPE). Professor Kappe has over 400 publications in the areas of continuous flow chemistry, application of microreactors, process intensification, and microwave-assisted reactions. He and his team have published syntheses with challenging systems and chemistry. He has served as an Ambassador for Flow Chem

Gunvor Closes Innovative US $745 Million Facility Linked to Sustainability Targets15.10.2018 12:00Pressemelding

Related savings will go to support new Gunvor Foundation GENEVA, Oct. 15, 2018 (GLOBE NEWSWIRE) -- Gunvor Group (“Gunvor”) has closed an innovative US $745 million secured borrowing base facility (“Facility”) that includes performance commitments related to Gunvor’s sustainability targets. Gunvor is the first energy commodities trading company to close a financing in which the interest rate will be dependent on the company’s year-on-year improvements in areas such as transparency, governance and the environment. The Facility, originally launched at US $625 million in 2012, was a renewal to provide for the working capital requirements of the company’s Antwerp and Rotterdam refineries. It was significantly oversubscribed to US $745 million through the addition of new lenders. The Facility was arranged by ING Bank, who acted as sole Coordinator and Active Bookrunner while maintaining its roles as Security Agent, Facility Agent and Fronting Bank. The structure for the sustainability target

Nasdaq Launches ESG futures in the Nordics15.10.2018 10:00Pressemelding

STOCKHOLM, Sweden, Oct. 15, 2018 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) today announced the launch of futures based on the recently launched OMXS30 ESG Responsible index (OMXS30ESG). The product is the first exchange listed and ESG compliant index future in the world. “In recent years we have seen institutions increase efforts to integrate sustainability into their investment strategies, with the Nordic region being in the forefront of this trend,” says Alessandro Romani, Head of European Equity Derivatives at Nasdaq. “Those looking to invest in a more sustainable way need more investment products based on established and liquid indexes. Our existing OMXS30 index future contract is among the most traded in Europe and we expect to see the same interest for the ESG version.” The OMXS30ESG Index was developed in cooperation with a number of leading Nordic asset managers, including Swedbank Robur. “At Swedbank, innovation and constant development are an important part of the business, a

Telix and ANMI Expand PSMA Imaging Partnership15.10.2018 00:00Pressemelding

MELBOURNE, Australia and LIÈGE, Belgium, Oct. 15, 2018 (GLOBE NEWSWIRE) -- Telix Pharmaceuticals Limited (ASX.TLX) (“Telix”, the “Company”), a clinical-stage biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals or “molecularly-targeted radiation” (MTR), today announced that it has expanded its partnership with Advanced Nuclear Medicine Ingredients SA (“ANMI”) for the 68Ga-HBED-CC-PSMA-11 (68Ga-PSMA) cold kit. The 68Ga-PSMA kit is developed by ANMI and commercialized by Telix for the US market where it is marketed as illumetTM . In response to considerable clinical interest in the illumetTM product, Telix has commenced scale-up manufacturing in the United States, following the recent filing of a drug master file (DMF) and the launch of several major clinical trials using the product, including the 750 patient VISION phase III trial (Endocyte, Inc.) and a 500-patient phase II study at Memorial Sloan Kettering C

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom