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Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.
Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.
Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?
You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.
If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.
Home / Markets / Industries / Industrials
Friday, May 09, 2008
Thousands of Californians Turn Out to Support the U.S. Air Force KC-45 Tanker Program At Northrop Grumman's Aviation Headquarters
Comtex
EL SEGUNDO, Calif., May 9, 2008 (PrimeNewswire via COMTEX News Network) ----Thousands of Northrop Grumman Corporation (NYSE:NOC) employees, Los Angeles-area elected officials and supplier company officials turned out at Northrop Grumman's El Segundo facility to support America's New Tanker, the U.S. Air Force KC-45.
"This program is a big win for the aerospace industry here in Southern California, creating thousands of new jobs and new opportunities for workers and their families," said El Segundo Mayor Kelly McDowell, one of several officials who spoke at the event. "Aerospace employees in our communities go to work and build superior products for our nation's service men and women every day, and the KC-45 Tanker program will ensure that tradition continues for decades to come."
Forty-three California companies will provide parts, systems or services to Northrop Grumman in support of the KC-45 Tanker program, creating more than 7,500 jobs and injecting more than $360 million into the economy annually.
The U.S. Air Force found Northrop Grumman's bid to build the next-generation of aerial refueling tankers superior to Boeing's offering. Despite this fact, the losing bidder wants the Government Accountability Office to overturn the Air Force decision to award the contract to Northrop Grumman.
"Winning this program is a huge accomplishment -- for our Air Force, for our company and for California's business community," said Paul Meyer, Northrop Grumman vice president of Air Mobility Systems and general manager of the KC-45 Tanker program. "Northrop Grumman has been an aerospace powerhouse for decades in California, and being selected to build 179 tanker aircraft is a new and exciting opportunity to deliver a superior aircraft while creating 48,000 American jobs across the country. We're extremely proud of this win and we're ready to build these tankers now."
Northrop Grumman currently employs nearly 30,000 Californians throughout the state, and the KC-45 Tanker supply chain employs more than 20,000 workers. In 2007, Northrop Grumman's economic impact in the state was $1.95 billion.
Northrop Grumman KC-45 Tanker suppliers in California include: Hexcel Composites (Dublin, Calif.) Dowkey (Ventura, Calif.) Meggitt Safety Systems (Simi Valley, Calif.) Hi-Temp Insulation (Camarillo, Calif.) PSI Bearings (Simi Valley, Calif.) ITT Aerospace Controls Div (Valencia, Calif.) Kirkhill-TA Co. (KRK) (Valencia, Calif.) Morton Manufacturing (Santa Clarita, Calif.) KGS (Arcadia, Calif.) Barry Controls (Burbank, Calif.) Air Master Prod Corp (Chatsworth, Calif.) Easterline Mason (Sylmar, Calif.) Avibank Mfg, Inc (North Hollywood, Calif.) Eaton Aerospace Corp (Los Angeles, Calif.) Hartwell Corp (Los Angeles, Calif.) Pentacon Aerospace Group (Chatsworth, Calif.) Pacific Scientific (Duarte, Calif.) Alcoa (Torrance, Calif.) Teledyne (Los Angeles, Calif.) Honeywell (Torrance, Calif.) Fischer Custom Communication (Torrance, Calif.) Cast Parts Inc. PAC Ind. (City of Industry, Calif.) Carlton Forge Works (Paramount, Calif.) Independent Forge Co. (Orange, Calif.) Phoenix International (Orange, Calif.) Kirkhill Rubber Co. (Brea, Calif.) City Wire Cloth (Fontana, Calif.) Circle Seal Controls (Corona, Calif.) ACRA Aerospace (Anaheim, Calif.) Jet Manufacturing (Corona, Calif.) Thermal Structures Inc. (Corona, Calif.) Ametek Aerospace (Costa Mesa, Calif.) Argo Tech (Costa Mesa, Calif.) RBC Transport Dynamics (Sanata Ana, Calif.) Parker Aerospace Air & Fuel Div (Irvine, Calif.) Stillman Seal (Carlsbad, Calif.) Synergy Microsystems (San Diego, Calif.) Viasat (Carlsbad, Calif.) GKN Aerospace Chem-Tronics (El Cajon, Calif.) Goodrich Aerostructures Group (Chula Vista, Calif.) Northrop Grumman Mission Systems (San Diego, Calif.) Transdigm Adelwiggins Group (Los Angeles, Calif.) Schlosser Forge Co. (Rancho Cucamonga, Calif.)
About the KC-45
The KC-45 Tanker aircraft will be assembled in Mobile, Ala. and employ 48,000 American workers at 230 U.S. companies in 49 states. It will be built by a world-class industrial team led by Northrop Grumman, and includes EADS North America, General Electric Aviation and Sargent Fletcher.
Northrop Grumman Corporation is a global defense and technology company whose 120,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.
0508-264
This news release was distributed by PrimeNewswire, www.primenewswire.com
SOURCE: Northrop Grumman Corp.
Randy Belote Northrop Grumman Corporation (703) 875-8525 randy.belote@ngc.com Tim Paynter Northrop Grumman Integrated Systems (321) 961-1101 tim.paynter@ngc.com
(C) Copyright 2008 PrimeNewswire, Inc. All rights reserved.
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