What is the primary reason for the charge Northrop Grumman is recording?

The charge is primarily due to a reevaluation of the estimated schedule and cost to complete the LHD-8 amphibious assault ship, along with resource impacts on other Gulf Coast ships and an evaluation of purchased intangible assets related to the Shipbuilding business.

How much will this charge impact Northrop Grumman's earnings?

Northrop Grumman expects to record a charge between $320 million and $360 million, which is estimated to reduce earnings per diluted share by $0.61 to $0.69.

Which business segment is most affected by this charge?

The charge is primarily related to Northrop Grumman's Shipbuilding business.

When will this charge be recognized?

The charge will be recorded in the company's 2008 first-quarter earnings.

NOC 8-K: Earnings & Results

Summary

Northrop Grumman Corporation (NOC) filed an 8-K on April 15, 2008, to disclose an expected charge to its first-quarter 2008 earnings. The company anticipates recording a charge between $320 million and $360 million, translating to $0.61 to $0.69 per diluted share. This charge is primarily related to its Shipbuilding business.

Key Highlights

1Northrop Grumman expects a significant charge to Q1 2008 earnings.
2The estimated charge ranges from $320 million to $360 million.
3This charge is expected to impact earnings per diluted share by $0.61 to $0.69.
4The charge is predominantly associated with the Shipbuilding segment.
5Key drivers for the charge include reevaluation of costs and schedule for the LHD-8 amphibious assault ship.
6Resource impacts on other Gulf Coast ships also contribute to the charge.
7An evaluation of purchased intangible assets within the Shipbuilding business is another contributing factor.

NORTHROP GRUMMAN CORP /DE/ 8-K Report, Financial Results (Apr 15, 2008)

Summary

Key Highlights

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