Northrop earnings drop as R&D revenues wane; aerospace giant cites the B-2, old fixed-price contracts. (company profile)

Los Angeles Business Journal | October 23, 1989| | Copyright

Northrop earnings drop as R&D revenues wane

Hurt by higher than anticipated costs on fixed-price contracts, aerospace giant Northrop Corp. last week reported third-quarter earnings fell 25 percent.

The company blamed the decrease on lower revenue in the research and development phase of long-term programs, including the B-2 advance technology bomber, which has passed the peak of its development phase and is now in initial production.

Higher costs on fix-priced research and development contracts undertaken years ago reduced Northrop's $102 million ...

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