No unrest among Northrop shareholders: they are still backing management, despite big setbacks.No unrest Unrest is a sociological phenomenon, for instance:
They are still backing management, despite big setbacks Northrop Corp. has had its shares of troubles but shareholders of the company apparently still have confidence in the 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"; . Last week they turned down a proposal that would make it easier for an investor to take over the company and, given a chance to question Northrop's future, only one shareholder expressed concern. But at the same time, a company-produced promotional film highlights one of its competitor's major projects. At the Century City-based company's annual meeting on May 15 in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , none of the 400 shareholders in attendance questioned Northrop Chairman Kent Kresa about the recent loss of the advanced tactical fighter The Advanced Tactical Fighter (ATF) contract was a demonstration and validation program undertaken by the United States Air Force to develop a next-generation air superiority fighter to counter emerging worldwide threats, including development and proliferation of Soviet-era Su-27 project or the uncertain future of the B-2 stealth stealth Any military technology intended to make vehicles or missiles nearly invisible to enemy radar or other electronic detection. Research in antidetection technology began soon after radar was invented. bomber bomber Military aircraft designed to drop bombs on surface targets. Aerial bombardment can be traced to the Italo-Turkish War (1911), in which an Italian pilot dropped grenades on two Turkish targets. contract. Only about four shareholders asked questions. One queried whether company layoffs have affected white collar as well as blue collar workers. Another question concerned increasing pension payments and a third shareholder asked if Northrop would be competing for a proposed Navy aircraft. Only one shareholder asked about the future of the company, whether Northrop's backlog of work is sufficient to maintain profitability and whether there was any hope of a major new contract. Later, the shareholder, a retired Northrop employee, said he was concerned that Northrop is not winning any major contracts. "What work is there for the future?" he asked. In response to the questions, Kresa said the layoffs have been across all levels of the company and that Northrop has raised some pension payments to keep pace with inflation but is constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. from further increases by efforts to cut operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . He said the company will be competing for the proposed AX Navy aircraft project. Kresa said sales will be flat this year but predicted that funding for the B-2, which accounts for more than 50 percent of Northrop's revenues, will continue. Last year, Northrop's sales were $5.49 billion with income of $210.4 million, or $4.48 cents a share. The meeting of the shareholders included a brief film about the B-2 and stealth technology stealth technology, designs and materials engineered for the military purpose of avoiding detection by radar or any other electronic system. Stealth, or antidetection, technology is applied to vehicles (e.g. that was produced by Northrop. The film has a heavily patriotic theme and includes interviews with Americans about why the country should have the B-2, a controversial Northrop project. The film also promotes stealth technology and includes shots of the F-117, the stealth fighter that was developed and manufactured by Calabasas-based Lockheed Corp. Last month a Northrop-lead team of contractors lost a contract to build the advanced tactical fighter to a Lockheed-led team. The contract could be worth up to $95 billion in new business for the contractors and their suppliers. In his report to shareholders, Kresa said the company will be forced to cut about 1,000 jobs by the end of the year, reducing Northrop's work force to about 36,000. In 1987, Northrop had about 48,000 employees. "I believe that the largest part of our force reduction is behind us, but probably not all," said Kresa, who is also Northrop's president and chief executive officer. He said the loss of the advanced tactical fighter project will not affect the company over the short term but will hurt future sales and earnings. "We're prepared for a potentially bright future, just a different one, without the F-23 (Northrop's version of the ATF ATF Molecular virology Activating transcription factor A cellular protein that stimulates transcription of adenovirus E4 transcription unit, which acts early in infection at any of several 'enhancer' binding sites ). Even without the ATF, Northrop is probably in better condition today than it has been in the last four or five years," Kresa said. He also said Northrop will establish an advanced technology and design division for future aircraft development. Kresa said he will also consolidate the company's scientific and advanced design talent into a yet-to-be designated facility. |
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