:Northrop Grumman Corporation (NYSE: NOC) is an American global aerospace and defense technology company formed by the 1994 purchase of Grumman by Northrop. The company was the fourth-largest defense contractor in the world as of 2010, and the largest builder of naval vessels. Northrop Grumman employs over 75,000 people worldwide. Its 2007 annual revenue is reported at US$32 billion.Northrop Grumman ranks #61 on the 2010 Fortune 500 list of U.S. industrial companies.It is headquartered in the Century City area of Los Angeles, California, but will move to Falls Church, Virginia in Summer 2011.
Northrop Grumman Corporation (Northrop Grumman) is an integrated enterprise consisting of businesses that cover the entire security spectrum, from undersea to outer space and into cyberspace. The Company operates in four segments: Aerospace Systems, Electronic Systems, Information Systems and Technical Services. In April 2009, the Company acquired Sonoma Photonics, Inc., as well as assets from Swift Engineering's Killer Bee Unmanned Air Systems product line. In December 2009, the Company sold its Advisory Services Division (ASD). In March 2010, the Company separated its Shipbuilding business through a spin-off of its subsidiary, Huntington Ingalls Industries, Inc.
Aerospace Systems
Aerospace Systems segment is a designer, developer, integrator and producer of manned and unmanned aircraft, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems. Aerospace Systems’ customers are primarily government agencies, use these systems in many different mission areas, including intelligence, surveillance and reconnaissance; communications; battle management; strike operations; electronic warfare; missile defense; earth observation; space science, and space exploration. The segment consists of four business areas: Strike & Surveillance Systems, Space Systems, Battle Management & Engagement Systems, and Advanced Programs & Technology.
Strike & Surveillance Systems designs, develops, manufactures and integrates tactical and long-range strike aircraft systems, unmanned systems and missile systems. These include the RQ-4 Global Hawk unmanned reconnaissance system, B-2 stealth bomber, F-35 Lightning II, F/A-18 Super Hornet strike fighter, Minuteman III Intercontinental Ballistic Missile (ICBM), MQ-8B Fire Scout unmanned aircraft system, Multi-Platform Radar Technology Insertion Program (MP-RTIP) and aerial targets.
Space Systems designs, develops, manufactures, and integrates spacecraft systems, subsystems and electronic and communications payloads. Its main programs include the James Webb Space Telescope (JWST), Advanced Extremely High Frequency (AEHF) payload, Space Tracking and Surveillance System (STSS) and restricted programs.
Battle Management & Engagement Systems designs, develops, manufactures, and integrates airborne early warning, surveillance, battlefield management, and electronic warfare systems. Its key programs include the E-2 Hawkeye, Joint Surveillance Target Attack Radar System (Joint STARS), Broad Area Maritime Surveillance (BAMS) unmanned aircraft system, Long Endurance Multi Intelligence Vehicle (LEMV) and the EA-6B Prowler.
Advanced Programs & Technology creates advanced technologies and concepts. Its programs include the Navy Unmanned Combat Air System (N-UCAS), the Airborne Laser Test Bed (ALTB), and other directed energy and advanced concepts programs.
Electronic Systems
Electronic Systems segment is engaged in the design, development, manufacture, and support of solutions for sensing, understanding, anticipating, and controlling the environment for its global military, civil, and commercial customers and their operations. Electronic Systems provides a variety of defense electronics and systems, airborne fire control radars, situational awareness systems, early warning systems, airspace management systems, navigation systems, communications systems, marine systems, space systems, and logistics services. The segment consists of five business areas: Intelligence, Surveillance, & Reconnaissance Systems; Land & Self Protection Systems; Naval & Marine Systems; Navigation Systems, and Targeting Systems.
Intelligence, Surveillance & Reconnaissance (ISR) Systems delivers products and services for space satellite applications, airborne and ground based surveillance, multi-sensor processing and analysis to provide battlespace awareness, missile defense, and command and control. The division also develops advanced space-based radar and electro-optical early warning and surveillance systems for strategic, tactical, and weather operations along with systems for enhancing the discovery, sharing, and exploitation of ISR data. Its key products include the Space Based Infrared System (SBIRS), Defense Meteorological Satellite Program (DMSP), Defense Support Program (DSP), ground processing, exploitation and dissemination systems, the TPS-78/703 family of ground based surveillance radars, and the Multi-role Electronically Scanned Array (MESA) radar.
Land & Self Protection Systems delivers products, systems, and services that support ground-based, helicopter and fixed wing platforms (manned and unmanned) with sensor and protection systems. These systems perform threat detection and countermeasures that defeat infrared and radio frequency (RF) guided missile and tracking systems. The division also provides integrated electronic warfare capability, communications, and intelligence systems; unattended ground sensors; automatic test equipment, and advanced threat simulators. Its key programs include the United States Marine Corps Ground/Air Task Oriented Radar (G/ATOR) multi-mission radar; the Large Aircraft Infrared Countermeasures (LAIRCM) system for the Unite States Air Force, the United States Navy, and strategic international and NATO allies; the AN/ALQ-131(V) electronic countermeasures pods; the LR-100 high-performance radar warning receiver (RWR)/electronic support measures (ESM)/electronic intelligence (ELINT) receiver system; the United States Army’s STARLite synthetic aperture radar for Unmanned Aerial Vehicles (UAVs); the United States Army Vehicle Intercom Systems (VIC 3 and VIC-5); the United States Army Next Generation Automated Test System (NGATS); the United States Air Force Joint Threat Emitter (JTE) training range system, and the Vehicle and Dismount Exploitation Radar (VADER) system that helps UAVs to track individual persons or vehicles.
Naval & Marine Systems delivers products and services to defense, civil, and commercial markets supporting smart navigation, shipboard radar surveillance, ship control, machinery control, integrated combat management systems for naval surface ships, high-resolution undersea sensors (for mine hunting, situational awareness, and other applications), unmanned marine vehicles, shipboard missile and encapsulated payload launch systems, propulsion and power generation systems, and nuclear reactor instrumentation and control. Its key products include integrated bridge and navigation systems, voyage management system, integrated platform management systems, integrated combat Management System, AN/WSN 7 Gyro Navigator, anti-ship missile defense and surveillance radars (Cobra Judy, AN/SPQ 9B, AN/SPS 74), and propulsion equipment and missile launch systems for the Virginia-class submarines.
Navigation Systems delivers products and services to defense, civil, and commercial markets supporting situational awareness, inertial navigation in domains (air, land, sea, and space), embedded Global Positioning Systems, Identification Friend or Foe (IFF) systems, acoustic sensors, cockpit video monitors, mission computing, and integrated avionics and electronics systems. Its key products include the Integrated Avionics System, the AN/TYQ-23 Aircraft Command and Control System, Fiber Optic Acoustic Sensors, and a robust portfolio of inertial sensors and navigation systems.
Targeting Systems delivers products and services supporting airborne combat avionics (fire control radars, multi-function apertures and pods), airborne electro-optical/infrared targeting systems, and laser/electro-optical systems, including hand-held, tripod-mounted, and ground or air vehicle mounted systems. Its key products include fire control radars for the B-1B, F-16 (worldwide), F-22 U.S. Air Force, and F-35; the AN/APN 241 navigation/weather radar; the AN/AAQ 28(V) LITENING family of targeting pods; Distributed Aperture EO/IR systems, and the Lightweight Laser Designator Rangefinder (LLDR). The Electronic Systems segment also includes the Advanced Concepts & Technologies Division (AC&TD), which is an organization that develops systems, technologies, and architectures.
Information Systems
Information Systems is a global provider of advanced solutions for the Department of Defense (DoD), national intelligence, federal civilian, state and local agencies and commercial customers. Products and services are focused on the fields of command, control, communications, computers and intelligence; air and missile defense; airborne reconnaissance; intelligence processing; decision support systems; cybersecurity; information technology, and systems engineering and integration. The segment consists of three business areas: Defense Systems; Intelligence Systems, and Civil Systems.
Defense Systems is an end-to-end provider of net-enabled Battle Management C4ISR systems, decision superiority, and mission-enabling solutions and services in support of the national defense and security of its nation and its allies. The division is a developer and integrator of many of the DoD’s programs-of-record, particularly for command and control and communications for the United States Air Force, the United States Army, the United States Navy, and Joint Forces. Its main products and services include Enterprise Infrastructure and Applications, Mission Systems Integration, Military Communications & Networks, Battle Management C2 and Decision Support Systems, Global and Operational C2, Ground and Maritime Combat Systems, Air and Missile Defense, Combat Support Solutions and Services, Defense Logistics Automation, and Force and Critical Infrastructure Protection. Systems are installed in operational and command centers worldwide and across DoD services and joint commands.
Intelligence Systems is focused on the delivery of systems and services to the United States intelligence community. Its main offerings include studies and analysis, systems development, enterprise information technology (IT), prime systems integration, products, sustainment, and operations and maintenance. The division focuses on several mission areas, including Airborne ISR, Geospatial Intelligence, Ground Systems, Integrated Intelligence and dynamic Cyber defense.
Civil Systems provides specialized information systems and services in support of government civil missions, such as homeland security, public health, cyber security, air traffic management and public safety. Primary customers are federal civilian, state and local agencies, and the United States Postal Service. Civil Systems develops and implements solutions that combine understanding of civil government domains with prime systems integration, enterprise applications development, and IT services, including cyber security, identity management and advanced network communications.
Technical Services
Technical Services segment is a provider of logistics, infrastructure, and sustainment support, while also providing a range of technical services, including training and simulation. The segment consists of three business areas: Defense and Government Services; Training Solutions, and Integrated Logistics and Modernization.
Defense and Government Services provides logistics, maintenance and reconstitution services, as well as civil engineering work, aerial and ground range operations in support of the military, technical support functions, which include space launch services, construction, protective and emergency services, and range-sensor-instrumentation operations. Primary customers include the Department of Energy (DoE), the DoD, the Department of Homeland Security, and the United States intelligence community, in both domestic and international locations.
Training Solutions provides training across the live, virtual and constructive domains to both the United States military and International peacekeeping forces, designs and develops future conflict training scenarios, and provides the United States warfighters and allies with tactics, techniques and procedures. This business area also offers diverse training applications ranging from battle command to professional military education. Primary customers include the DoD, Department of State, and Department of Homeland Security.
Integrated Logistics and Modernization provides life-cycle product support and weapons system sustainment. This business area is focused on providing performance-based logistical support to the warfighter, including supply chain management services, warehousing and inventory transportation, field services and mobilization, sustaining engineering, maintenance, repair and overhaul, and ongoing weapon maintenance and technical assistance. It specializes in performing Contractor Logistics Support of both original equipment manufacturer (OEM) and third party aviation platforms involving maintenance, modification, modernization and rebuilding essential parts and assemblies. Primary customers include the DoD, as well as international military and commercial customers.
Northrop Grumman competes with Lockheed Martin Corporation, The Boeing Company, Raytheon Company, General Dynamics Corporation, L-3 Communications Corporation, SAIC and BAE Systems Inc.
With Kresa still at the helm, Northrop Grumman adopted a new strategy in the late 1990s of focusing the company increasingly on cutting-edge areas of the defense industry, including electronics and systems integration. Acquisitions played a key role in the company's shifting emphasis. In 1999 the company purchased the information systems division of California Microwave, Inc., which was involved in supporting communications and intelligence systems of the U.S. Department of Defense. Northrop Grumman also bought Ryan Aeronautical, a unit of Allegheny Teledyne Incorporated, that year. Ryan manufactured pilotless aircraft (aerial drones), including the Global Hawk, a high-altitude, long-endurance reconnaissance drone capable of providing real-time intelligence imagery. By the early 21st century, Northrop Grumman was one of the world's leading producers of high-end aerial drones. Acquisitions in 2000 included Comptek Research, Inc. and Federal Data Corporation. Northrop Grumman's newfound focus also led to the divestment of Vought Aircraft, which was sold to the Carlyle Group in July 2000 for $1.2 billion. The company now had three main sectors: systems integration, defense electronics, and information technology.
Continuing a most remarkable comeback, Northrop Grumman in December 2000 reached an agreement to acquire Litton Industries, Inc., which reported revenues of $5.59 billion for the fiscal year ending in July 2000. Completed in April 2001, the deal involved about $3.8 billion in Northrop Grumman stock, with Northrop also agreeing to assume $1.3 billion of debt. Northrop gained significant synergistic operations through the acquisition, including Litton's navigation, guidance, and control systems; marine electronics operations; electronic warfare systems; and an information systems unit that concentrated on networking systems integration. Adding Litton also meant that Northrop Grumman would add two more sectors to its existing three: an electronic components segment, which made connectors, circuit boards, and other devices used in the military, telecommunications, and other industries; and a ship systems segment, builder of guided missile destroyers, amphibious assault ships, and other vessels for the U.S. Navy.
Northrop Grumman's acquisition spree continued in the later months of 2001. The company acquired an electronics and information unit of GenCorp Inc. for $315 million. The unit specialized in space-based sensors that provided early warning of missile attacks as well as ground systems for processing data from space-based platforms. These operations became part of Northrop Grumman's space systems division. Northrop Grumman also bested General Dynamics in the battle for control of Newport News Shipbuilding Inc., maker of aircraft carriers and submarines for the U.S. Navy. Upon completion of the acquisition in November 2001, Northrop Grumman became the world's largest maker of naval ships and the number three defense contractor in the United States, trailing only Boeing and Lockheed Martin. The value of the deal was about $2.6 billion, which included the assumption of $500 million in debt. Newport News was set up as Northrop Grumman's sixth operating sector. The acquisition spree had saddled Northrop Grumman with a hefty debt load, so the company in November 2001 completed offerings of common stock and other securities, raising about $1.45 billion in the process, with the bulk of the proceeds going to reduce debt.
Kresa's string of acquisitions had positioned Northrop Grumman as an unlikely survivor of the post-Cold War defense industry consolidation, with revenues projected to reach $18 billion by 2002. In the wake of the events of September 11, 2001, the company seemed to be perfectly positioned to be a key contractor for the U.S. military. By focusing the company's operations on cutting-edge areas--electronics, information technology, command and control systems--Kresa had anticipated the increased need for intelligence gathering and precision operations in the post-Cold War era. At the same time, Northrop Grumman maintained or acquired significant positions in more basic areas of the military, such as aircraft and naval ships, and so had the potential to benefit from any general military buildup.
Principal Subsidiaries: Allied Holdings, Inc.; California Microwave, Inc.; Comptek Research, Inc.; Federal Data Corporation; Grumman International, Inc.; Grumman Ohio Corporation; IRAN - Northrop Grumman Programs Service Company; Logicon Commercial Information Services Inc.; Logicon, Inc.; Logicon International, Inc.; Mocit, Inc.; NGC Denmark ApS (Denmark); Northrop Grumman Aviation, Inc.; Northrop Grumman - Canada, Ltd.; Northrop Grumman Electronic Systems International Company; Northrop Grumman Electronic Systems International Company (U.K.); Northrop Grumman Electronics Systems Integration International, Inc.; Northrop Grumman Field Support Services, Inc.; Northrop Grumman Foreign Sales Corporation (Barbados); Northrop Grumman International, Inc.; Northrop Grumman International Services Company, Inc.; Northrop Grumman ISA International, Inc.; Northrop Grumman Overseas Holdings, Inc.; Northrop Grumman Overseas Service Corporation; Northrop Grumman Space Operations, L.P.; Northrop Grumman Tactical Systems, LLC; Northrop Grumman Technical Services Corporation; Northrop International Aircraft, Inc.; Park Air Electronics, Inc.; Perceptics Corporation; Remotec, Inc. (96%); Sterling Software Inc.; Sterling Software Weather, Inc.; Xetron Corporation.
Principal Operating Units: Electronic Systems; Information Technology; Integrated Systems; Ship Systems; Newport News; Component Technologies.
Principal Competitors: The Boeing Company; Lockheed Martin Corporation; Raytheon Company; General Dynamics Corporation; Honeywell Aerospace Solutions; BAE Systems; European Aeronautic Defence and Space Company N.V.; United Technologies Corporation.
OVERALL
Beta: 1.08
Market Cap (Mil.): $19,032.68
Shares Outstanding (Mil.): 292.72
Annual Dividend: 2.00
Yield (%): 3.08
FINANCIALS
NOC.N Industry Sector
P/E (TTM): 9.40 23.08 18.26
EPS (TTM): 35.49 -- --
ROI: 9.66 4.96 3.74
ROE: 16.37 16.99 6.60
Statistics:
Public Company
Incorporated: 1939 as Northrop Aircraft Company
Employees: 98,250
Sales: $7.62 billion (2000)
Stock Exchanges: New York Pacific
Ticker Symbol: NOC
NAIC: 332993 Ammunition (Except Small Arms) Manufacturing; 332995 Other Ordnance and Accessories Manufacturing; 334290 Other Communication Equipment Manufacturing; 334419 Other Electronic Component Manufacturing; 334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing; 336411 Aircraft Manufacturing; 336413 Other Aircraft Part and Auxiliary Equipment Manufacturing; 336414 Guided Missile and Space Vehicle Manufacturing; 336611 Ship Building and Repairing; 541512 Computer Systems Design Services
Key Dates:
1929: Grumman Aircraft Engineering Corporation is founded.
1939: Jack Northrop forms Northrop Aircraft Company, beginning work on a "flying wing" bomber.
1958: Northrop Aircraft changes its name to Northrop Corporation.
1969: Grumman Aircraft changes its name to Grumman Corporation.
1981: A U.S. court of appeals blocks an attempted hostile takeover of Grumman by LTV Corporation.
1994: Northrop acquires Grumman for $2.17 billion, forming Northrop Grumman Corporation.
1996: Company acquires the defense and electronic systems business of Westinghouse Electric Corporation for $2.9 billion.
1997: Northrop Grumman agrees to be acquired by Lockheed Martin for $11.6 billion; Logicon, a leading provider of defense information technology and battlefield management systems, is acquired.
1998: Merger with Lockheed falls apart, following U.S. government opposition on antitrust grounds; Northrop Grumman subsequently focuses increasingly on cutting-edge areas of the defense industry, including electronics and systems integration.
2000: Vought Aircraft is sold to the Carlyle Group for $1.2 billion.
2001: Litton Industries, Inc. is acquired for $3.8 billion in stock and $1.3 billion in debt; Newport News Shipbuilding Inc., maker of aircraft carriers and submarines for the U.S. Navy, is acquired for $2.6 billion.
Name Age Since Current Position
Coleman, Lewis 69 2010 Non-Executive Independent Chairman of the Board
Bush, Wesley 50 2010 President, Chief Executive Officer, Director
Palmer, James 61 2007 Chief Financial Officer, Corporate Vice President
Heintz, Kenneth 64 2005 Corporate Vice President, Chief Accounting Officer, Controller
Livanos, Alexis 62 2009 Corporate Vice President, Chief Technology Officer
Martinez, Judy 2011 Vice President, Chief Compliance Officer
Cheston, Sheila 52 2010 Corporate Vice President, General Counsel
Rabinowitz, Mark 49 2007 Corporate Vice President, Treasurer
Ryan, David 2011 Vice President and General Manager - Intelligence Systems Division
Grant, Jeffrey 2011 Vice President, General Manager - Space Systems Division - Aerospace Systems Sector
Burke, Robert 2011 Vice President, Deputy General Manager - Space Systems Division
Petters, C. Michael 51 2008 Corporate Vice President and President - Shipbuilding Sector
Pitts, James 59 2005 Corporate Vice President and President - Electronics Systems Sector
Mills, Linda 61 2009 Corporate Vice President and President - Information Systems Sector
Ervin, Gary 53 2009 Corporate Vice President and President - Aerospace Systems Sector
Fraser, Darryl 52 2008 Corporate Vice President - Communications
Flach, Gloria 52 2010 Corporate Vice President and President - Northrop Grumman Enterprise Shared Services
Vice, Thomas 48 2010 Corporate Vice President and President - Technical Services Sector
Paraskevopoulos, Nicholas 2011 Vice President - Engineering, Electronic Systems Sector
Zelickson, Kelley 2011 Vice President - Air and Missile Defense Systems
Ashworth, Sid 59 2010 Corporate Vice President - Government Relations
Papay, Mike 2011 Sector Vice President - Cyber Initiatives
Peters, Aulana 69 1992 Independent Director
Fazio, Victor 68 2000 Independent Director
Sharer, Kevin 63 2003 Independent Director
Frank, Stephen 69 2005 Independent Director
Myers, Richard 69 2006 Independent Director
Felsinger, Donald 63 2007 Independent Director
Krapek, Karl 62 2008 Independent Director
Kleiner, Madeleine 59 2008 Independent Director
Gordon, Bruce 65 2008 Independent Director
Address:
1840 Century Park East
Los Angeles, California 90067-2199
U.S.A.
Northrop Grumman Corporation (Northrop Grumman) is an integrated enterprise consisting of businesses that cover the entire security spectrum, from undersea to outer space and into cyberspace. The Company operates in four segments: Aerospace Systems, Electronic Systems, Information Systems and Technical Services. In April 2009, the Company acquired Sonoma Photonics, Inc., as well as assets from Swift Engineering's Killer Bee Unmanned Air Systems product line. In December 2009, the Company sold its Advisory Services Division (ASD). In March 2010, the Company separated its Shipbuilding business through a spin-off of its subsidiary, Huntington Ingalls Industries, Inc.
Aerospace Systems
Aerospace Systems segment is a designer, developer, integrator and producer of manned and unmanned aircraft, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems. Aerospace Systems’ customers are primarily government agencies, use these systems in many different mission areas, including intelligence, surveillance and reconnaissance; communications; battle management; strike operations; electronic warfare; missile defense; earth observation; space science, and space exploration. The segment consists of four business areas: Strike & Surveillance Systems, Space Systems, Battle Management & Engagement Systems, and Advanced Programs & Technology.
Strike & Surveillance Systems designs, develops, manufactures and integrates tactical and long-range strike aircraft systems, unmanned systems and missile systems. These include the RQ-4 Global Hawk unmanned reconnaissance system, B-2 stealth bomber, F-35 Lightning II, F/A-18 Super Hornet strike fighter, Minuteman III Intercontinental Ballistic Missile (ICBM), MQ-8B Fire Scout unmanned aircraft system, Multi-Platform Radar Technology Insertion Program (MP-RTIP) and aerial targets.
Space Systems designs, develops, manufactures, and integrates spacecraft systems, subsystems and electronic and communications payloads. Its main programs include the James Webb Space Telescope (JWST), Advanced Extremely High Frequency (AEHF) payload, Space Tracking and Surveillance System (STSS) and restricted programs.
Battle Management & Engagement Systems designs, develops, manufactures, and integrates airborne early warning, surveillance, battlefield management, and electronic warfare systems. Its key programs include the E-2 Hawkeye, Joint Surveillance Target Attack Radar System (Joint STARS), Broad Area Maritime Surveillance (BAMS) unmanned aircraft system, Long Endurance Multi Intelligence Vehicle (LEMV) and the EA-6B Prowler.
Advanced Programs & Technology creates advanced technologies and concepts. Its programs include the Navy Unmanned Combat Air System (N-UCAS), the Airborne Laser Test Bed (ALTB), and other directed energy and advanced concepts programs.
Electronic Systems
Electronic Systems segment is engaged in the design, development, manufacture, and support of solutions for sensing, understanding, anticipating, and controlling the environment for its global military, civil, and commercial customers and their operations. Electronic Systems provides a variety of defense electronics and systems, airborne fire control radars, situational awareness systems, early warning systems, airspace management systems, navigation systems, communications systems, marine systems, space systems, and logistics services. The segment consists of five business areas: Intelligence, Surveillance, & Reconnaissance Systems; Land & Self Protection Systems; Naval & Marine Systems; Navigation Systems, and Targeting Systems.
Intelligence, Surveillance & Reconnaissance (ISR) Systems delivers products and services for space satellite applications, airborne and ground based surveillance, multi-sensor processing and analysis to provide battlespace awareness, missile defense, and command and control. The division also develops advanced space-based radar and electro-optical early warning and surveillance systems for strategic, tactical, and weather operations along with systems for enhancing the discovery, sharing, and exploitation of ISR data. Its key products include the Space Based Infrared System (SBIRS), Defense Meteorological Satellite Program (DMSP), Defense Support Program (DSP), ground processing, exploitation and dissemination systems, the TPS-78/703 family of ground based surveillance radars, and the Multi-role Electronically Scanned Array (MESA) radar.
Land & Self Protection Systems delivers products, systems, and services that support ground-based, helicopter and fixed wing platforms (manned and unmanned) with sensor and protection systems. These systems perform threat detection and countermeasures that defeat infrared and radio frequency (RF) guided missile and tracking systems. The division also provides integrated electronic warfare capability, communications, and intelligence systems; unattended ground sensors; automatic test equipment, and advanced threat simulators. Its key programs include the United States Marine Corps Ground/Air Task Oriented Radar (G/ATOR) multi-mission radar; the Large Aircraft Infrared Countermeasures (LAIRCM) system for the Unite States Air Force, the United States Navy, and strategic international and NATO allies; the AN/ALQ-131(V) electronic countermeasures pods; the LR-100 high-performance radar warning receiver (RWR)/electronic support measures (ESM)/electronic intelligence (ELINT) receiver system; the United States Army’s STARLite synthetic aperture radar for Unmanned Aerial Vehicles (UAVs); the United States Army Vehicle Intercom Systems (VIC 3 and VIC-5); the United States Army Next Generation Automated Test System (NGATS); the United States Air Force Joint Threat Emitter (JTE) training range system, and the Vehicle and Dismount Exploitation Radar (VADER) system that helps UAVs to track individual persons or vehicles.
Naval & Marine Systems delivers products and services to defense, civil, and commercial markets supporting smart navigation, shipboard radar surveillance, ship control, machinery control, integrated combat management systems for naval surface ships, high-resolution undersea sensors (for mine hunting, situational awareness, and other applications), unmanned marine vehicles, shipboard missile and encapsulated payload launch systems, propulsion and power generation systems, and nuclear reactor instrumentation and control. Its key products include integrated bridge and navigation systems, voyage management system, integrated platform management systems, integrated combat Management System, AN/WSN 7 Gyro Navigator, anti-ship missile defense and surveillance radars (Cobra Judy, AN/SPQ 9B, AN/SPS 74), and propulsion equipment and missile launch systems for the Virginia-class submarines.
Navigation Systems delivers products and services to defense, civil, and commercial markets supporting situational awareness, inertial navigation in domains (air, land, sea, and space), embedded Global Positioning Systems, Identification Friend or Foe (IFF) systems, acoustic sensors, cockpit video monitors, mission computing, and integrated avionics and electronics systems. Its key products include the Integrated Avionics System, the AN/TYQ-23 Aircraft Command and Control System, Fiber Optic Acoustic Sensors, and a robust portfolio of inertial sensors and navigation systems.
Targeting Systems delivers products and services supporting airborne combat avionics (fire control radars, multi-function apertures and pods), airborne electro-optical/infrared targeting systems, and laser/electro-optical systems, including hand-held, tripod-mounted, and ground or air vehicle mounted systems. Its key products include fire control radars for the B-1B, F-16 (worldwide), F-22 U.S. Air Force, and F-35; the AN/APN 241 navigation/weather radar; the AN/AAQ 28(V) LITENING family of targeting pods; Distributed Aperture EO/IR systems, and the Lightweight Laser Designator Rangefinder (LLDR). The Electronic Systems segment also includes the Advanced Concepts & Technologies Division (AC&TD), which is an organization that develops systems, technologies, and architectures.
Information Systems
Information Systems is a global provider of advanced solutions for the Department of Defense (DoD), national intelligence, federal civilian, state and local agencies and commercial customers. Products and services are focused on the fields of command, control, communications, computers and intelligence; air and missile defense; airborne reconnaissance; intelligence processing; decision support systems; cybersecurity; information technology, and systems engineering and integration. The segment consists of three business areas: Defense Systems; Intelligence Systems, and Civil Systems.
Defense Systems is an end-to-end provider of net-enabled Battle Management C4ISR systems, decision superiority, and mission-enabling solutions and services in support of the national defense and security of its nation and its allies. The division is a developer and integrator of many of the DoD’s programs-of-record, particularly for command and control and communications for the United States Air Force, the United States Army, the United States Navy, and Joint Forces. Its main products and services include Enterprise Infrastructure and Applications, Mission Systems Integration, Military Communications & Networks, Battle Management C2 and Decision Support Systems, Global and Operational C2, Ground and Maritime Combat Systems, Air and Missile Defense, Combat Support Solutions and Services, Defense Logistics Automation, and Force and Critical Infrastructure Protection. Systems are installed in operational and command centers worldwide and across DoD services and joint commands.
Intelligence Systems is focused on the delivery of systems and services to the United States intelligence community. Its main offerings include studies and analysis, systems development, enterprise information technology (IT), prime systems integration, products, sustainment, and operations and maintenance. The division focuses on several mission areas, including Airborne ISR, Geospatial Intelligence, Ground Systems, Integrated Intelligence and dynamic Cyber defense.
Civil Systems provides specialized information systems and services in support of government civil missions, such as homeland security, public health, cyber security, air traffic management and public safety. Primary customers are federal civilian, state and local agencies, and the United States Postal Service. Civil Systems develops and implements solutions that combine understanding of civil government domains with prime systems integration, enterprise applications development, and IT services, including cyber security, identity management and advanced network communications.
Technical Services
Technical Services segment is a provider of logistics, infrastructure, and sustainment support, while also providing a range of technical services, including training and simulation. The segment consists of three business areas: Defense and Government Services; Training Solutions, and Integrated Logistics and Modernization.
Defense and Government Services provides logistics, maintenance and reconstitution services, as well as civil engineering work, aerial and ground range operations in support of the military, technical support functions, which include space launch services, construction, protective and emergency services, and range-sensor-instrumentation operations. Primary customers include the Department of Energy (DoE), the DoD, the Department of Homeland Security, and the United States intelligence community, in both domestic and international locations.
Training Solutions provides training across the live, virtual and constructive domains to both the United States military and International peacekeeping forces, designs and develops future conflict training scenarios, and provides the United States warfighters and allies with tactics, techniques and procedures. This business area also offers diverse training applications ranging from battle command to professional military education. Primary customers include the DoD, Department of State, and Department of Homeland Security.
Integrated Logistics and Modernization provides life-cycle product support and weapons system sustainment. This business area is focused on providing performance-based logistical support to the warfighter, including supply chain management services, warehousing and inventory transportation, field services and mobilization, sustaining engineering, maintenance, repair and overhaul, and ongoing weapon maintenance and technical assistance. It specializes in performing Contractor Logistics Support of both original equipment manufacturer (OEM) and third party aviation platforms involving maintenance, modification, modernization and rebuilding essential parts and assemblies. Primary customers include the DoD, as well as international military and commercial customers.
Northrop Grumman competes with Lockheed Martin Corporation, The Boeing Company, Raytheon Company, General Dynamics Corporation, L-3 Communications Corporation, SAIC and BAE Systems Inc.
With Kresa still at the helm, Northrop Grumman adopted a new strategy in the late 1990s of focusing the company increasingly on cutting-edge areas of the defense industry, including electronics and systems integration. Acquisitions played a key role in the company's shifting emphasis. In 1999 the company purchased the information systems division of California Microwave, Inc., which was involved in supporting communications and intelligence systems of the U.S. Department of Defense. Northrop Grumman also bought Ryan Aeronautical, a unit of Allegheny Teledyne Incorporated, that year. Ryan manufactured pilotless aircraft (aerial drones), including the Global Hawk, a high-altitude, long-endurance reconnaissance drone capable of providing real-time intelligence imagery. By the early 21st century, Northrop Grumman was one of the world's leading producers of high-end aerial drones. Acquisitions in 2000 included Comptek Research, Inc. and Federal Data Corporation. Northrop Grumman's newfound focus also led to the divestment of Vought Aircraft, which was sold to the Carlyle Group in July 2000 for $1.2 billion. The company now had three main sectors: systems integration, defense electronics, and information technology.
Continuing a most remarkable comeback, Northrop Grumman in December 2000 reached an agreement to acquire Litton Industries, Inc., which reported revenues of $5.59 billion for the fiscal year ending in July 2000. Completed in April 2001, the deal involved about $3.8 billion in Northrop Grumman stock, with Northrop also agreeing to assume $1.3 billion of debt. Northrop gained significant synergistic operations through the acquisition, including Litton's navigation, guidance, and control systems; marine electronics operations; electronic warfare systems; and an information systems unit that concentrated on networking systems integration. Adding Litton also meant that Northrop Grumman would add two more sectors to its existing three: an electronic components segment, which made connectors, circuit boards, and other devices used in the military, telecommunications, and other industries; and a ship systems segment, builder of guided missile destroyers, amphibious assault ships, and other vessels for the U.S. Navy.
Northrop Grumman's acquisition spree continued in the later months of 2001. The company acquired an electronics and information unit of GenCorp Inc. for $315 million. The unit specialized in space-based sensors that provided early warning of missile attacks as well as ground systems for processing data from space-based platforms. These operations became part of Northrop Grumman's space systems division. Northrop Grumman also bested General Dynamics in the battle for control of Newport News Shipbuilding Inc., maker of aircraft carriers and submarines for the U.S. Navy. Upon completion of the acquisition in November 2001, Northrop Grumman became the world's largest maker of naval ships and the number three defense contractor in the United States, trailing only Boeing and Lockheed Martin. The value of the deal was about $2.6 billion, which included the assumption of $500 million in debt. Newport News was set up as Northrop Grumman's sixth operating sector. The acquisition spree had saddled Northrop Grumman with a hefty debt load, so the company in November 2001 completed offerings of common stock and other securities, raising about $1.45 billion in the process, with the bulk of the proceeds going to reduce debt.
Kresa's string of acquisitions had positioned Northrop Grumman as an unlikely survivor of the post-Cold War defense industry consolidation, with revenues projected to reach $18 billion by 2002. In the wake of the events of September 11, 2001, the company seemed to be perfectly positioned to be a key contractor for the U.S. military. By focusing the company's operations on cutting-edge areas--electronics, information technology, command and control systems--Kresa had anticipated the increased need for intelligence gathering and precision operations in the post-Cold War era. At the same time, Northrop Grumman maintained or acquired significant positions in more basic areas of the military, such as aircraft and naval ships, and so had the potential to benefit from any general military buildup.
Principal Subsidiaries: Allied Holdings, Inc.; California Microwave, Inc.; Comptek Research, Inc.; Federal Data Corporation; Grumman International, Inc.; Grumman Ohio Corporation; IRAN - Northrop Grumman Programs Service Company; Logicon Commercial Information Services Inc.; Logicon, Inc.; Logicon International, Inc.; Mocit, Inc.; NGC Denmark ApS (Denmark); Northrop Grumman Aviation, Inc.; Northrop Grumman - Canada, Ltd.; Northrop Grumman Electronic Systems International Company; Northrop Grumman Electronic Systems International Company (U.K.); Northrop Grumman Electronics Systems Integration International, Inc.; Northrop Grumman Field Support Services, Inc.; Northrop Grumman Foreign Sales Corporation (Barbados); Northrop Grumman International, Inc.; Northrop Grumman International Services Company, Inc.; Northrop Grumman ISA International, Inc.; Northrop Grumman Overseas Holdings, Inc.; Northrop Grumman Overseas Service Corporation; Northrop Grumman Space Operations, L.P.; Northrop Grumman Tactical Systems, LLC; Northrop Grumman Technical Services Corporation; Northrop International Aircraft, Inc.; Park Air Electronics, Inc.; Perceptics Corporation; Remotec, Inc. (96%); Sterling Software Inc.; Sterling Software Weather, Inc.; Xetron Corporation.
Principal Operating Units: Electronic Systems; Information Technology; Integrated Systems; Ship Systems; Newport News; Component Technologies.
Principal Competitors: The Boeing Company; Lockheed Martin Corporation; Raytheon Company; General Dynamics Corporation; Honeywell Aerospace Solutions; BAE Systems; European Aeronautic Defence and Space Company N.V.; United Technologies Corporation.
OVERALL
Beta: 1.08
Market Cap (Mil.): $19,032.68
Shares Outstanding (Mil.): 292.72
Annual Dividend: 2.00
Yield (%): 3.08
FINANCIALS
NOC.N Industry Sector
P/E (TTM): 9.40 23.08 18.26
EPS (TTM): 35.49 -- --
ROI: 9.66 4.96 3.74
ROE: 16.37 16.99 6.60
Statistics:
Public Company
Incorporated: 1939 as Northrop Aircraft Company
Employees: 98,250
Sales: $7.62 billion (2000)
Stock Exchanges: New York Pacific
Ticker Symbol: NOC
NAIC: 332993 Ammunition (Except Small Arms) Manufacturing; 332995 Other Ordnance and Accessories Manufacturing; 334290 Other Communication Equipment Manufacturing; 334419 Other Electronic Component Manufacturing; 334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing; 336411 Aircraft Manufacturing; 336413 Other Aircraft Part and Auxiliary Equipment Manufacturing; 336414 Guided Missile and Space Vehicle Manufacturing; 336611 Ship Building and Repairing; 541512 Computer Systems Design Services
Key Dates:
1929: Grumman Aircraft Engineering Corporation is founded.
1939: Jack Northrop forms Northrop Aircraft Company, beginning work on a "flying wing" bomber.
1958: Northrop Aircraft changes its name to Northrop Corporation.
1969: Grumman Aircraft changes its name to Grumman Corporation.
1981: A U.S. court of appeals blocks an attempted hostile takeover of Grumman by LTV Corporation.
1994: Northrop acquires Grumman for $2.17 billion, forming Northrop Grumman Corporation.
1996: Company acquires the defense and electronic systems business of Westinghouse Electric Corporation for $2.9 billion.
1997: Northrop Grumman agrees to be acquired by Lockheed Martin for $11.6 billion; Logicon, a leading provider of defense information technology and battlefield management systems, is acquired.
1998: Merger with Lockheed falls apart, following U.S. government opposition on antitrust grounds; Northrop Grumman subsequently focuses increasingly on cutting-edge areas of the defense industry, including electronics and systems integration.
2000: Vought Aircraft is sold to the Carlyle Group for $1.2 billion.
2001: Litton Industries, Inc. is acquired for $3.8 billion in stock and $1.3 billion in debt; Newport News Shipbuilding Inc., maker of aircraft carriers and submarines for the U.S. Navy, is acquired for $2.6 billion.
Name Age Since Current Position
Coleman, Lewis 69 2010 Non-Executive Independent Chairman of the Board
Bush, Wesley 50 2010 President, Chief Executive Officer, Director
Palmer, James 61 2007 Chief Financial Officer, Corporate Vice President
Heintz, Kenneth 64 2005 Corporate Vice President, Chief Accounting Officer, Controller
Livanos, Alexis 62 2009 Corporate Vice President, Chief Technology Officer
Martinez, Judy 2011 Vice President, Chief Compliance Officer
Cheston, Sheila 52 2010 Corporate Vice President, General Counsel
Rabinowitz, Mark 49 2007 Corporate Vice President, Treasurer
Ryan, David 2011 Vice President and General Manager - Intelligence Systems Division
Grant, Jeffrey 2011 Vice President, General Manager - Space Systems Division - Aerospace Systems Sector
Burke, Robert 2011 Vice President, Deputy General Manager - Space Systems Division
Petters, C. Michael 51 2008 Corporate Vice President and President - Shipbuilding Sector
Pitts, James 59 2005 Corporate Vice President and President - Electronics Systems Sector
Mills, Linda 61 2009 Corporate Vice President and President - Information Systems Sector
Ervin, Gary 53 2009 Corporate Vice President and President - Aerospace Systems Sector
Fraser, Darryl 52 2008 Corporate Vice President - Communications
Flach, Gloria 52 2010 Corporate Vice President and President - Northrop Grumman Enterprise Shared Services
Vice, Thomas 48 2010 Corporate Vice President and President - Technical Services Sector
Paraskevopoulos, Nicholas 2011 Vice President - Engineering, Electronic Systems Sector
Zelickson, Kelley 2011 Vice President - Air and Missile Defense Systems
Ashworth, Sid 59 2010 Corporate Vice President - Government Relations
Papay, Mike 2011 Sector Vice President - Cyber Initiatives
Peters, Aulana 69 1992 Independent Director
Fazio, Victor 68 2000 Independent Director
Sharer, Kevin 63 2003 Independent Director
Frank, Stephen 69 2005 Independent Director
Myers, Richard 69 2006 Independent Director
Felsinger, Donald 63 2007 Independent Director
Krapek, Karl 62 2008 Independent Director
Kleiner, Madeleine 59 2008 Independent Director
Gordon, Bruce 65 2008 Independent Director
Address:
1840 Century Park East
Los Angeles, California 90067-2199
U.S.A.