December 2, 2009 |
Northrop Grumman Corp. has stepped up its threat to pull out of a $35-billion competition to build aerial refueling tankers for the U.S. Air Force. In a letter to the Pentagon's top acquisition official Tuesday, Northrop President Wes Bush said the government's "request for proposal" that outlines requirements for the aircraft favors a bid by its rival, Boeing Co. If the terms are not changed, Northrop might not enter the competition to build 179 tankers, he said. "I must regrettably inform you that, absent a responsive set of changes in the final RFP, Northrop Grumman has determined that it cannot submit a bid," Bush said.
August 20, 2009 |
Northrop Grumman Corp. is selling a unit that advises military and intelligence agencies and may fetch as much as $2 billion, four people familiar with the matter said. Northrop hired Goldman Sachs Group Inc. and Credit Suisse Group to solicit bids for the division, known as Tasc, said the people, who spoke on condition of anonymity. Among potential buyers are private-equity firms including Carlyle Group, Kohlberg Kravis Roberts & Co. and Blackstone Group, the people said. The U.S. Defense Department was ordered by Congress this year to tighten conflict-of-interest rules on firms such as Tasc and is pushing to reduce its spending on outside consultants.
July 24, 2009 |
Northrop Grumman Corp.'s second-quarter profit dropped by 20% as the defense contractor said it was hurt by higher pension costs and higher estimates of costs to complete several ships being built in its Gulf Coast yards. The company, which makes military aircraft and defense electronics, said Thursday that it earned $394 million, or $1.21 a share, in the three months ended June 30, down from $495 million, or $1.44, a year earlier. Revenue rose 4% to $8.96 billion.
April 23, 2009 |
Two of the nation's largest aerospace companies reported sharply contrasting first-quarter financial results Wednesday as Boeing Co. said its earnings fell by half while Northrop Grumman Corp. posted a 48% jump in profit. The results reflected the shifting fortunes of the two companies. Boeing, the world's largest maker of commercial aircraft, has been hit hard by a recession-induced slump in air travel that has reduced demand for new planes.
April 3, 2009 |
In one of the nation's largest settlements in a whistle-blower case, Northrop Grumman Corp. has agreed to pay the federal government $325 million to resolve claims that TRW, which it acquired in 2002, provided defective parts for a spy satellite program in the 1990s.
January 23, 2009 |
Defense contractor Northrop Grumman Corp. warned Thursday that it would post losses for the 2008 fourth quarter and full year because of a charge of $3 billion to $3.4 billion connected to past acquisitions. Recent market turmoil has forced Northrop to write down the value of its acquisitions of Litton Industries Inc. and TRW Inc. made in 2000 and 2001, respectively. Northrop annually accounts for the difference between book values and fair values of the company's shipbuilding and space units at the end of November.