Northrop Grumman Corp. said on Monday that damage and work delays caused by hurricanes Katrina and Rita would cause it to take a third-quarter charge and cut into its full-year profit.

Northrop, which builds ships at yards in New Orleans and at Pascagoula and Gulfport, Miss., said its facilities have incurred “significant damage” and that has had an impact on its operations.

The L.A.-based defense contractor said work delays and higher costs caused by the hurricanes would slash 40 cents per share from its 2005 earnings.

Northrop said it now expects full-year earnings per share of $3.55 to $3.65, compared with an earlier forecast of $3.90 to $4. Full-year revenue is anticipated to be $30.5 billion to $31 billion, down from previous guidance of $31 billion to $31.5 billion.

Analysts on average had expected a 2005 profit of $3.96 on revenues of $31.2 billion.

Northrop said its previously stated 2006 earnings estimates of $4.10 to $4.30 per share on revenues of approximately $32 billion have not changed.

The company, which has 11 ships under construction at its Gulf Coast yards, said the cost to replace and repair its property, plant and equipment will be approximately $1 billion much of it insured. About 12,500 of its 19,800 employees are now back to work at these shipyards.

Northrop said its ship production schedules have been significantly delayed. Work delays are now expected to reduce full-year earnings per share by 8 cents, compared with an earlier estimated range of 6 cents to 12 cents per share. The delayed work is expected to be performed in 2006 and 2007. Its ship systems unit is expected to book a charge for contract costs and lower margins of 30 cents to 35 cents a share in the third quarter. When combined with the impact of work delays, the total reduction to 2005 earnings is expected to be about 40 cents per share.

Northrop shares fell 1.1 percent to settle at $53.48 on Monday.