Calpine lowering profit in 2001 by $11.5 million

San Jose, Calif. >> Calpine Corp., a power company whose shares have fallen 77 percent in the past year, said it is lowering 2001 profit by $11.5 million because it didn't get some plant-emission credits it bought last year. The step lowers the San Jose, Calif.-based company's 2001 earnings per share by 3 cents, Calpine said.

The restatement is related to the purchase last year of emission credits, which the electricity company often buys to help it obtain environmental permits for new power plants, Calpine said. Since reporting its 2001 results in January, the company discovered that credits it had bought weren't available.

Calpine has sued the broker that sold the emission credits in an effort to recover the loss. The company said the loss won't have an affect on future profit.

Northrop extends hostile bid for TRW

Los Angeles >> Northrop Grumman Corp., the fourth-largest U.S. defense contractor, extended its $11.4 billion hostile bid for rival TRW Inc. after a deadline passed without enough shares tendered to complete the transaction.

Northrop extended the tender-offer deadline until midnight, New York time, on April 12, according to a statement. Cleveland- based TRW, the eighth-biggest U.S. defense contractor, is holding a special shareholders meeting April 22 to vote on the offer.

Northrop, the world's largest builder of military ships, would become the largest U.S. military contractor if it buys TRW, according to some analysts. TRW makes sensors and electronics used on satellites and is a major subcontractor on the U.S. missile defense program.

TRW's board has advised investors not to tender their shares, saying the $47-a-share stock offer is too low.

In other news . . .

WASHINGTON >> The government's pension insurance program, in its largest pension takeover ever, is assuming control of three underfunded retirement plans covering 82,000 workers and retirees of bankrupt steel company LTV Corp. The Pension Benefit Guarantee Corporation said yesterday that the plans are underfunded by about $2.2 billion, with combined assets of nearly $2.2 billion and benefit liabilities of $4.4 billion.