Media Resources

News Releases

Bookmark and Share

Northrop Grumman Announces New $1.5 Billion Share Repurchase Authorization

LOS ANGELES, Oct. 25, 2005 (PRIMEZONE) -- Northrop Grumman Corporation's (NYSE:NOC) board of directors has authorized a new program to repurchase up to $1.5 billion of its outstanding common stock. The company expects to complete the new program, which represents nearly 8 percent of shares outstanding, over the next 12 to 18 months. As of Sept. 30, 2005, Northrop Grumman had approximately 355 million shares outstanding.

"The board's decision to initiate a new, larger share repurchase program will allow us to substantially reduce outstanding shares," said Ronald D. Sugar, Northrop Grumman's chairman, chief executive officer and president. "It also demonstrates our strong financial position, our confidence in the outlook for the company's performance, and our continued commitment to a balanced cash deployment strategy. We believe that the purchase of our common stock represents an attractive opportunity for the company and our shareholders and is one of the best uses of the company's substantial free cash flow."

The company completed its previous $1 billion share repurchase program, authorized by the board of directors on Oct. 26, 2004, in less than 12 months. As of Sept. 30, 2005, under the $1 billion authorization, the company had repurchased 18.2 million common shares at an average price of $54.83 per share. Since the inception of its share repurchases in August 2003, the company has repurchased more than 32 million shares for a total of $1.7 billion.

About Northrop Grumman

Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With more than 125,000 employees, and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

Note: Certain statements and assumptions in this release contain or are based on "forward-looking" information that Northrop Grumman Corporation (the "Company") believes to be within the definition in the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties, and include, among others, statements in the future tense, and all statements accompanied by terms such as "project," "expect," "estimate," "assume," "believe," "guidance" or variations thereof. This information reflects the Company's best estimates when made, but the company expressly disclaims any duty to update this information if new data becomes available or estimates change after the date of this release.

Such "forward-looking" information includes, among other things, financial guidance regarding sales, segment operating margin, pension expense, employer contributions under pension plans and medical and life benefits plans, and cash flow, and is subject to numerous assumptions and uncertainties, many of which are outside the Company's control. These include the Company's assumptions with respect to future revenues, expected program performance and cash flows, returns on pension plan assets and variability of pension actuarial and related assumptions, the outcome of litigation and appeals, hurricane recoveries, environmental remediation, divestitures of businesses, successful reduction of debt, successful negotiation of contracts with labor unions, effective tax rates and timing and amounts of tax payments, the results of any audit or appeal process with the Internal Revenue Service, and anticipated costs of capital investments, among other things.

The Company's operations are subject to various additional risks and uncertainties resulting from its position as a supplier, either directly or as subcontractor or team member, to the U.S. Government and its agencies as well as to foreign governments and agencies; actual outcomes are dependent upon various factors, including, without limitation, the Company's successful performance of internal plans; government customers' budgetary constraints; customer changes in short-range and long-range plans; domestic and international competition in both the defense and commercial areas; product performance; continued development and acceptance of new products and, in connection with any fixed price development programs, controlling cost growth in meeting production specifications and delivery rates; performance issues with key suppliers and subcontractors; government import and export policies; acquisition or termination of government contracts; the outcome of political and legal processes and of the assertion or prosecution of potential substantial claims by or on behalf of a U.S. Government customer; natural disasters, including recent hurricanes affecting the Company's Gulf Coast shipyards and the associated risks underlying the Company's assumptions regarding timely return of experienced workers with critical skills, achieving expected learning-curve progress, amounts and timing of recoveries under insurance contracts, availability of materials and supplies, reconstitution of the supply chain and other infrastructure within and outside Company facilities to enable efficient production, contractual performance relief and the application of cost sharing terms, impacts of timing of cash receipts and the availability of other mitigating elements; terrorist acts; legal, financial, and governmental risks related to international transactions and global needs for military aircraft, military and civilian electronic systems and support, information technology, naval vessels, space systems and related technologies, as well as other economic, political and technological risks and uncertainties and other risk factors set out in the Company's filings from time to time with the Securities and Exchange Commission, including, without limitation, Company reports on Form 10-K and Form 10-Q.

CONTACTS:  Dan McClain (Media) 
           Northrop Grumman Corporation
           (310) 201-3335

           Gaston Kent (Investors) 
           Northrop Grumman Corporation
           (310) 201-3423