Material Technologies Inc., the small Los Angeles company that has developed an innovative bridge inspection device, has secured a contract that could push its technology into widespread use.

The company, which has seen interest in its device rise since the catastrophic August collapse of a Minnesota bridge, has been awarded a contract from the Federal Highway Administration to validate the technology. The device can efficiently detect metal cracks only a few microns wide.

Under the $350,000 contract, the highway agency will test the device at its labs in the Washington D.C. area, with assistance from the company. If the technology is validated, the administration will likely recommend the device be used to inspect bridges across the country.

“When that happens it will be major for the company,” said Chief Executive Robert Bernstein.

Under federal law, all of the country’s 200,000 metal bridges must be inspected at least once every two years.

Since the bridge collapse in August, the company has fielded inquiries from states across the United States and even from foreign countries. But to date, the company has only secured three contracts in Pennsylvania, as well as smaller deals in New Jersey and Massachusetts.

Favorable Forecast

Amid a slew of new contracts, one of L.A.’s largest companies has reaffirmed its bright outlook for the year.

Northrop Grumman Corp., the $30 billion defense contractor and aerospace manufacturer, said it expects revenue to climb to $31.5 billion on earnings of $4.90 to $5.05 per share. Wall Street estimates put the company’s earnings around $5.05.

At an investor conference last week, Chief Financial Officer James Palmer said profit margins should also rise as one of its shipyards recovers from damage suffered during a recent hurricane.

The company has recently won several large government contracts for a variety of services. Northrop was one of five companies to receive a contract that could be worth as much as $15 billion to provide technology to help the government’s counter-drug and counter-narcoterrorism operations.

“Northrop Grumman’s broad technical expertise will enable the company to deliver solutions that meet the current and future needs of the Counter-Narcoterrorism Technology Program Office and protect U.S. national security and coalition partner interests,” said Wood Parker, president of the company’s Information Technology Intelligence group, in a statement.

The company also won a $331 million U.S. Army contract last week for logistical support at several military locations. Northrop additionally was awarded three Navy contracts worth $120 million, $43 million and $1.8 million.

Suits Settled

Pasadena-based office supply and label manufacturer Avery Dennison Corp. has settled patent infringement lawsuits brought by 3M Co.

The St. Paul, Minn.-based maker of Post-It notes and other workplace products had sued Avery in the United States and the Netherlands over patents related to pressure sensitive adhesives in its large format graphics products.

The financial terms of the deal were not disclosed, but as part of the settlement, Avery will now manufacture and sell its Easy Apply Technology products in the large format graphics market under a 3M license.

In other Avery news, the company announced last week it has named Timothy Bond vice president of its worldwide Office Products businesses.

Bond, who previously worked at Kraft Foods Inc. subsidiary Nabisco, joined Avery in 2001 as vice president of sales for its North American Office Products division.

Manufacturing Loses Steam

Concerns over the housing market and a suffering economy have bruised the local and U.S. manufacturing sectors.

Though employment increased slightly, a recent report by the Los Angeles County Economic Development Corp. predicted a decline of about 1,000 local manufacturing jobs in 2007.

That comes amid the smallest margin of growth by U.S. manufacturers in six months, according to the September monthly index of factory activity by the Institute for Supply Management.

The index fell to 52 in September, continuing a three-month decline in the rate of growth. An index above 50 means the sector is expanding.

The index, based on a survey of manufacturers, showed new orders slipped to 53.4 last month from 55.3, signaling a slowdown in future growth.

A number of survey respondents said the housing market’s woes were lowering consumer confidence and contributing to a tightening of wallets. The top-performing industries were petroleum and coal products, apparel and electrical equipment.

Staff reporter Richard Clough can be reached at (323) 549-5225, ext. 251, or at [email protected].