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Northrop Sees $12 Billion in Sales by 2001

May 22, 1997|(Bloomberg News)

Northrop Grumman Corp.'s revenue is likely to reach $12 billion by 2001 following its acquisition of defense electronics company Logicon Inc., Chairman and Chief Executive Kent Kresa told shareholders at the company's annual meeting. Earlier this month, Los Angeles-based Northrop agreed to pay $744 million for Torrance-based Logicon. Revenue growth is expected to come mainly from the firm's military and commercial electronics businesses rather than its better-known military aircraft operations. At least one analyst, however, is skeptical that the combined Northrop-Logicon will be able to boost revenue from $8.1 billion in 1996 to $12 billion by 2001. "Our 2001 estimate, including Logicon, is for $9.7 billion," said Byron Callan of Merrill Lynch. Kresa has said the company continues to look for ways to increase revenue and profit, including acquisitions. Northrop shares rose $1.125 to close at $85.25 on the New York Stock Exchange.

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