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NEW YORK (AP) - Northrop Grumman Corp. cut its 2005 profit forecast Monday after estimating that damages and work delays caused by two recent hurricanes will lop up to 40 cents a share from full-year earnings.
The Los Angeles-based military contractor estimated damage to its shipbuilding unit caused by hurricanes Katrina and Rita at $1 billion and said it expects to take a charge of 8 cents a share in the third quarter to cover work delays.
Northrop said it expects to book another charge of 30 cents to 35 cents a share to cover increased costs associated with existing ship contracts caused by the work delays and tighter margins.
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