Defense contractor Northrop Grumman Corp. on Thursday raised its yearly earnings outlook and said its board had approved a 13 percent increase in its quarterly dividend.
L.A.-based Northrop said it now expects earnings from continuing operations of $3.60 to $3.75 per share, up from previous guidance of $3.45 to $3.60 per share. The new outlook results mostly from a gain of $45 million, or 12 cents per share, from the recent sale of TRW shares. The stock sale reduced Northrop Grumman’s stake in the Livonia, Mich.-based auto parts maker to 9.9 percent.
The company said it expects 2005 sales to be between $31 billion and $31.5 billion and 2006 sales of approximately $33 billion.
Northrop also said it was raising its dividend to 26 cents a share from a previous 23 cents a share, payable June 11 to shareholders of record as of May 31. And its board declared a $1.75 per share dividend on its Series B convertible preferred shares, payable July 15 to shareholders of record as of July 1.
