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Northrop sees lower revenue, strong margins in 2014

WASHINGTON, Oct 23 (Reuters) - Northrop Grumman Corp Chief Executive Wes Bush on Wednesday said continuing uncertainty about U.S. budget levels meant revenues were likely to decline in 2014, but the company still expected to generate strong margins.

Bush said he expected the company to continue generating strong cash flow in 2014, and aimed to convert 100 percent of its earnings into free cash flow, before discretionary pension contributions.

Northrop reported free cash flow of $860 million in the third quarter, up from $748 million in the year earlier period. It forecast free cash flow of $1.9 billion to $2.2 billion in the full year.