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Northrop Sees Sales Beat

The defense contractor reaffirms earnings guidance.

Northrop Grumman

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raised revenue guidance ahead of a conference in New York with institutional investors.

The Los Angeles-based contractor said it expects to make $4.40 to $4.45 for the year, including a 21-cent gain tied to the sale of



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Previously the company had been calling for a profit of $4.20 to $4.25 a share.

Northrop said revenue should be $31 billion to $32 billion.

Analysts surveyed by Thomson Financial were looking for a $4.29-a-share profit on sales of $30.2 billion.

The company said it expects to make $4.65 to $4.90 a share for 2007, in line with the $4.84 estimate.

Operating margin rate in 2006 is expected to be in the low 8% range and in 2007 is expected to be in the high 8% range, using 2006 pension assumptions.

Net cash provided by operating activities in 2006 is expected to be between $1.5 and $1.8 billion, and increase to between $2.5 and $2.8 billion in 2007.