NORTHROP GRUMMAN TRYING TO SELL UNIT NAVIGATION SYSTEMS MAY FETCH $1 BILLION.Byline: GREGORY J. WILCOX Staff Writer Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Corp. is trying to sell its Navigation Systems A GPS-based electronic system in a car or truck that provides a real time map of the vehicle's current location as well as step-by-step directions to a programmed destination. See GPS and vehicle tracking. business, which has some operations in Woodland Hills, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. published reports. The Century City-based company could get up to $1 billion for the unit, The Wall Street Journal reported Monday, citing people familiar with the development. The company declined to discuss any plans or the report. Northrop's Navigation Systems is part of its Electronic System Sector, which is based in suburban Baltimore. The unit makes gyroscopes and satellite navigation systems satellite navigation system satellite n → système m de navigation par satellite for commercial airplanes, combat aircraft and spacecraft. About 1,550 people work in Woodland Hills, said company spokesman Dan McClain. According to the company's Web site, the unit has supplied more inertial navigation systems Noun 1. inertial navigation system - a system to control a plane or spacecraft; uses inertial forces inertial guidance system robot pilot, automatic pilot, autopilot - a navigational device that automatically keeps ships or planes or spacecraft on a steady for aircraft than all other manufacturers combined. ``It's our company policy that we don't comment on speculation regarding mergers, acquisitions or divestitures,'' McClain said. Last week the big defense contractor Noun 1. defense contractor - a contractor concerned with the development and manufacture of systems of defense armed forces, armed services, military, military machine, war machine - the military forces of a nation; "their military is the largest in the region"; reported second-quarter net income of $430 million, up an annual 17 percent, and earnings per share of $1.23, up an annual 23 percent. Revenue slipped to $7.6 billion from $7.8 billion. The company also raised its 2006 earnings per share estimate to a range of $4.35 to $4.45, up from an earlier stated range of $4.25 to $4.40. At the same time the company reported that the electronics sector's second-quarter sales decreased 8 percent, to $1.6 billion, from the second quarter of 2005, primarily due to lower production rates on several programs. The sector's operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: decreased 9 percent from the second quarter of 2005, corresponding to the decreased sales volume. Northrop Grumman had been on an aggressive merger and acquisition campaign that wound down four years ago. It included a $3.6 billion purchase of Woodland Hills-based Litton Industries Named after inventor Charles Litton Sr., Litton Industries was a large defense contractor in the United States, bought by the Northrop Grumman Corporation in 2001. Inc. in April 2001. That deal gave Northrop Grumman a big shipbuilding unit in Mississippi and a navigation business. The latter was folded into Northrop Grumman's existing operations. Ronald D. Sugar, the former top executive at Litton, is now Northrop Grumman's chairman and chief executive officer. Selling off a business unit would not be surprising. During last week's conference call, Wesley Bush, the company's president and chief financial officer, noted that there have been more sales of business units than purchases. greg.wilcox(at)dailynews.com (818) 713-3743 |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion