Printer Friendly


 BETHPAGE, N.Y., Nov. 23 ~PRNewswire~ -- Grumman Corporation (NYSE: GQ) said today it is combining two of its operating groups as part of a major reorganization to cut costs and continue to improve its competitive position in a declining defense market.
 Grumman's Aerospace and Electronics Group will be created from the merger of the Aircraft Group and the Space and Electronics Group. This merger and the consolidation of other administrative functions will result in the elimination of 500 management and administrative positions by March 31, 1993. This is in addition to the 700 similar positions eliminated at the corporate office and Data Systems Division in September and October 1992. The company's total employment declined to 21,900 on Oct. 31 from 23,800 at the beginning of the year.
 "We can no longer support the organization and facilities that we had in the 1980s when the defense market was growing and we had 34,000 employees," said Renso L. Caporali, chairman. "Grumman continues to review which manufacturing plants and office buildings will be vacated as the work force declines."
 The company announced it has completed closing its Bethpage aircraft assembly facilities and transferred all E-2C work to Calverton, Long Island. Over 1.5 million square feet of manufacturing floor space has been closed in Bethpage, which started as the center of Grumman's aircraft manufacturing in the 1930s. Development and production of most of Grumman's aircraft from the Hellcat of World War II to today's F-14 were done in these plants. Detail parts and tooling fabrication will continue there.
 Albert Verderosa has been elected president of the new Aerospace and Electronics Group. He had been president of the Space and Electronics Group. Robert H. Denien, who had been executive vice president of the Aircraft Group, will be executive vice president of the new group. Verderosa reports to Robert J. Myers, Grumman president and chief operating officer. Peter B. Oram, president of the Aircraft Group, will retire on January l.
 "Pete Oram managed our aircraft business during some very difficult times," said Caporali. "No matter what challenges he faced, he never lost sight of the needs of his customers and the concerns of Grumman people. We will miss him and wish him well."
 "Al Verderosa, with over 35 years of experience in both our aircraft and electronics organizations, is uniquely qualified to head the new group," Myers stated. "Al began working on Grumman aircraft in 1956 and became vice president of aircraft programs in 1982, before heading up our Joint STARS effort three years later. The success of this surveillance system for the Air Force and Army is due in large part to Al's leadership.
 "Bob Denien has over 30 years of experience with Grumman in all areas of our aircraft operations. He and Al comprise the core of a very strong team to direct our defense business in the years ahead," Myers concluded.
 "The key to success in the increasingly competitive aerospace industry is to give the customer the highest quality for the best price," said Caporali. "This is something that everybody in our business understands today, so it is something that we have to do better than our competition.
 "Grumman has always tried to give its customers the best product," he continued. "Today we are determined to produce that quality for the lowest cost. ?"There are large programs that we are positioned to win in all our core businesses: aircraft, surveillance systems, electronics, data systems, and space exploration," he stated. "Our financial position is stronger than it has been since the mid-1980s. Debt is lower than it has been in the past six years, and our backlog is a strong $7 billion. By continuing to streamline our businesses, we can capitalize on these strengths and secure a competitive advantage for each of these opportunities," Caporali concluded.
 Grumman Corporation, headquartered in Bethpage, N.Y., is best known as a leading international aircraft and aerospace company. Other businesses range from sophisticated integrated information and electronics systems to U.S. Postal Service delivery trucks. Revenues were $4 billion in 1991.
 -0- 11~23~92
 ~CONTACT: Robert Harwood of Grumman, 516-575-5287~

CO: Grumman Corporation ST: New York IN: ARO SU:

LR -- NY066 -- 0659 11~23~92 15:02 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 23, 1992

Related Articles
Northrop Grumman To Close Four Plants; Reduce Work Force by 755; Pretax Charge of $90 Million
Northrop Grumman to Restructure; New Operating Structure to Eliminate $300 Million of Costs
Potential Value of $1.2 Billion; Northrop Grumman Receives Contract for Joint Stars Upgrades.
Northrop Grumman Completes Acquisition Of California Microwave Defense Business.
Northrop Grumman Secures Order for 14 Torpedo Defense Systems.
Northrop Grumman Unit to Pursue Worldwide B707 Re-Engining Market.
State of Texas Selects Logicon to Provide Information Technology Outsourcing Services.
Northrop Grumman Welcomes Narrowed KC-45 Protest.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters