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NORTHROP TO ESTABLISH COMMERCIAL AIRCRAFT DIVISION

 NORTHROP TO ESTABLISH COMMERCIAL AIRCRAFT DIVISION
 LOS ANGELES, Oct. 28/PRNewswire/ -- Northrop Corporation


(NYSE: NOC) , with a $1.1 billion backlog in fuselages and other components for the Boeing 747, and a declared strategy to expand its role as a designer and builder of commercial airliner structures, today announced it will establish a Commercial Aircraft Division, effective Jan. 2, 1993.
 Northrop's work on commercial aircraft produced $540 million in revenues last year, about 10 percent of the company's total sales.
 The Commercial Aircraft Division will be headquartered in Hawthorne, Calif., and will employ about 2,200 people. The division will report to the Northrop Aircraft Division and will be headed by Jim C. Hoover, 46, who will be named vice president and general manager. He reports to Wallace C. Solberg, corporate vice president and general manager of Northrop's Aircraft Division. Mr. Hoover has held key management positions in Manufacturing Operations and Program Management since joining the company in 1975, and has been closely involved with the 747 program.
 "We have carefully analyzed the future of the worldwide commercial aircraft structures business, and we see it as a long-term growth area for Northrop," said Kent Kresa, Northrop chairman, president and chief executive officer.
 "Northrop has a world-class reputation in the commercial aircraft field for quality and for schedule, and we intend to assure we remain cost-competitive in this global marketplace as it develops in the future," he said. "The creation of this separate commercial division will enable us to have improved, streamlined operating procedures, processes and management systems for each business area, military and commercial, that are suited to the unique requirements of each market.
 "The net result," Mr. Kresa added, "will be stronger management focus and streamlined business systems for both our military and commercial customers."
 The continuous cost reduction measures, particularly in the overhead area, that Northrop has been carrying out in its Aircraft Division over the last three years have been a necessary precursor to establishing the commercial aircraft structures division and to being more cost efficient in both its military and commercial business, Mr. Kresa said.
 While achieving an 8 percent sales increase since 1989, Northrop managed a 20 percent reduction in its work force, half of it through reductions in overhead. Most of the reduction has occurred in its Aircraft Division, which now employs about 13,600 people.
 Mr. Kresa reiterated that Northrop does not intend to go into the commercial transport business on its own.
 "We intend to participate strongly in this market, and especially in the widebody segment of the market, as a major, high-quality commercial structures designer and subcontractor, working with prime aircraft manufacturers," he said.
 Market studies show that widebodied jet transports like the 747 represent one-third of current aircraft deliveries, and are projected to grow to one-half of the commercial transport market over the next 20 years.
 Northrop has been associated with Boeing on the 747 jetliner program since its inception and, in addition to the fuselage section, builds cargo and passenger doors and other smaller structural components for all versions of the aircraft. Most of the work is done in company facilities in Hawthorne, Calif., and elsewhere in the Los Angeles area, and in Northrop's production site in Perry, Ga.
 In another indication of its long-term interest in aircraft structures, Northrop last August purchased a 49 percent minority holding in the Vought Aircraft Co. Vought, formerly the Aircraft Division of LTV Aerospace and Defense Co., is, like Northrop, a producer of large structures for commercial and military aircraft. Under the terms of its minority investment, Northrop has an option to acquire the entire Vought Aircraft Co. at any time during a three-year period beginning in 1995.
 -0- 10/28/92
 /CONTACT: Tony Cantafio of Northrop Corp., 310-201-3333/


(NOC) CO: Northrop Corp. ST: California IN: ARO AIR SU:

KJ -- LA029 -- 6075 10/28/92 13:51 EST
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Date:Oct 28, 1992
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