Northrop Grumman Corporation provides technologically advanced, innovative products, services, and integrated solutions in aerospace, electronics,
information and services. The company participates in many high-priority defense and government services technology programs
in the United States and abroad as a prime contractor, principal subcontractor, partner, or preferred supplier. Northrop Grumman conducts most of its
business with the U.S. Government, principally the Department of Defense (DoD) and intelligence community. Northrop Grumman also conducts business with local, state,
and foreign governments and domestic and international commercial customers.
The company was originally formed in 1939 as Northrop Corporation and was later reincorporated in Delaware in 1985. Northrop Grumman is headquartered in Falls Church, Virginia.
Effective as of March 31, 2011, Northrop Grumman completed the spin-off to its shareholders of Huntington Ingalls Industries (HII). HII operates the company's former Shipbuilding business. The spin-off was the culmination of Northrop Grumman's decision to explore strategic alternatives for Shipbuilding, as it was determined to be in the best interests of shareholders, customers, and employees by allowing the company and Shipbuilding to pursue more effectively their respective opportunities to maximize value. In connection with the spin-off of HII, the company received $1.4 billion in cash.
Northrop Grumman operates in four principal business segments:
The following table highlights Northrop Grumman's sales from 2010 to 2012 by segment:
A description of the business of each of the company's segments is set forth below.
Aerospace Systems, headquartered in Redondo Beach, California, is a leading designer, developer, integrator and producer of manned and
unmanned aircraft, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems critical to maintaining the nation's
security and leadership in technology. Aerospace Systems' customers, primarily government agencies, use these systems in many different mission
areas including intelligence, surveillance and reconnaissance; communications; battle management; strike operations; electronic warfare; missile defense;
earth observation; space science; and space exploration.
The segment consists of four business areas:
Unmanned Systems; Military Aircraft Systems; Space Systems; and Advanced Programs & Technology.
Unmanned Systems designs, develops, manufactures, and integrates tactical and reconnaissance unmanned systems. Key programs include the RQ-4 Global Hawk reconnaissance system, Triton (formerly known as Broad Area Maritime Surveillance or BAMS) aircraft system, NATO Alliance Ground Surveillance (AGS), MQ-8 Fire Scout aircraft systems, and aerial targets.
Military Aircraft Systems designs, develops, manufactures, and integrates airborne C4ISR, electronic warfare mission systems,
long-range strike and tactical aircraft systems. Key programs include E-2D Advanced Hawkeye,
the E-8C Joint Surveillance Target Attack Radar System (JSTARS),
and the newly developed Long Endurance Multi-Intelligence Vehicle (LEMV), an optionally manned or unmanned lighter than air weapon system.
Electronic warfare mission systems includes the EA-18G Growler (AN/ALQ-218 jamming receiver) and EA-6B Prowler airborne electronic attack weapon systems. This business area designed, developed and manufactured the B-2A Spirit stealth bomber and now provides sustainment and upgrade services for the B-2, which is the nation's most advanced long range strike aircraft system. Tactical aircraft includes the design, development, manufacture and integration of F/A-18E/F Super Hornet aft sections and F-35 Lightning II center sections.
Space Systems designs, develops, manufactures, and integrates spacecraft systems, subsystems and electronic and communications payloads. Major programs include the James Webb Space Telescope (JWST), Advanced Extremely High Frequency (AEHF) payload, and many restricted programs.
Advanced Programs & Technology creates advanced technologies and concepts to satisfy existing and emerging
customer needs. This business area matures these technologies and concepts to
create and capture new programs that other Aerospace Systems business areas can
execute. Key programs include the Navy Unmanned Combat Air System (N-UCAS), restricted programs,
and directed energy and advanced concepts programs for air, land and space applications.
Financial results for Northrop Grumman's Aerospace Systems segment were as follows:
Aerospace Systems sales for 2012 were comparable to the prior year. Sales of unmanned systems increased approximately $280 million, primarily related to ramping up on the NATO Alliance Ground Surveillance (AGS) and Fire Scout programs. Additionally, there was higher volume of approximately $200 million on the F-35 program due to deliveries on LRIP 5, the first F-35 contract accounted for under the units-of-delivery method. These increases were offset by the termination of a weather satellite program, which reduced sales by approximately $175 million, as well as lower sales on the Joint Surveillance Target Attack Radar System (JSTARS), F/A-18 and certain restricted space programs.
Operating income and margin rate for 2012 were comparable to the prior year. The operating income and margin rate reflect approximately $90 million lower operating income from the F/A-18 program's lower volume and transition from the multi-year 2 contract to the lower margin multi-year 3 contract, principally offset by performance improvements in space systems and higher margin rates and volume on sales of unmanned systems.
Electronic Systems, headquartered in Linthicum, Maryland, is a leader in the design, development, manufacture,
and support of solutions for sensing, understanding, anticipating, and controlling the operating environment for Northrop Grumman's
global military, civil, and commercial customers. Electronic Systems provides a variety of defense electronics and systems,
airborne fire control radars, situational awareness systems, early warning systems, airspace management systems, navigation systems,
communications systems, marine power and propulsion systems, space systems, and logistics services.
The segment consists of four business areas:
Intelligence, Surveillance, Reconnaissance & Targeting Systems; Land & Self Protection Systems; Naval & Marine Systems; and Navigation Systems.
Intelligence, Surveillance, Reconnaissance & Targeting Systems delivers products and services for space satellite applications, airborne and ground based surveillance, multi-sensor processing, analysis, and dissemination for combat units and national agencies, both domestic and international. These systems provide battle space awareness, missile defense, command and control, combat avionics (fire control radars, multi-function apertures and pods), and airborne electro-optical/infrared (EO/IR) targeting systems. Key programs include airborne fire control radars such as the AN/APG-68 Radar System for the F-16 Fighting Falcon, the AN/APG-80 AESA Radar (for F-16E/F), the AN/APQ-164 radar for the B-1B Lancer, the AN/APG-77 radar for the F-22 Raptor Active Electronically Scanned Array (AESA), the AN/APG-81 AESA radar for the F-35 Lightning II; EO/IR systems such as the F-35's AN/AAQ-37 Distributed Aperture Systems (DAS), and AN/AAQ-28(V) LITENING family of targeting pods; airborne surveillance radars such as the Multirole Electronically Scanned Array, Airborne Early Warning & Control System, Multi-Function Active Sensor (MFAS) for the U.S. Navy's MQ-4C Triton, Multi-Platform Radar Technology Insertion Program; space systems such as the Space-Based Infrared System (SBIRS), Defense Meteorological Satellite Program (DMSP), Defense Support Program, and the Scalable Space Inertial Reference Unit.
Land & Self Protection Systems delivers products, systems, and services that support ground-based, helicopter, and fixed wing platforms (manned and unmanned) with sensor and protection systems. A major product line of this business area consists of systems that perform threat detection and countermeasures that defeat infrared and radio frequency (RF) guided missile and tracking systems. This business area also provides integrated electronic warfare capability, communications and intelligence systems, unattended ground sensors, automatic test equipment, advanced threat simulators, ground based surveillance radars, and laser/electro-optical systems including hand-held, tripod-mounted, and ground or air vehicle mounted systems. Key programs include the Ground/Air Task Oriented Radar, the Three-Dimensional Expeditionary Long-Range Radar, the Large Aircraft Infrared Countermeasures (LAIRCM), the AN/ALQ-131(V) ECM pod, the Common Infrared Countermeasures system (CIRCM), the AN/APG-78 Fire Control Radar used on the AH-64 Apache, and the Vehicle and Dismount Exploitation Radar.
Naval & Marine Systems delivers products and services to defense, civil, and commercial customers supporting smart navigation, shipboard radar surveillance, ship control, machinery control, integrated combat management systems for naval surface ships, high-resolution undersea sensors (for mine hunting, situational awareness, and other applications), unmanned marine vehicles, shipboard missile and encapsulated payload launch systems, propulsion and power generation systems, and nuclear reactor instrumentation and control. Key programs include AN/SPQ-9B Anti-Ship Missile Defense (ASMD) radar, Integrated Bridge and Navigation Systems, Voyage Management Systems, Integrated Platform and Combat Management Systems, Inertial Navigator Systems, SSN 774 Virginia Class Submarine, and the Trident II D5 Launch System.
Navigation Systems delivers products and services to defense, civil, and commercial customers supporting situational awareness,
inertial navigation in all domains (air, land, sea, and space), embedded Global Positioning Systems, Identification Friend or Foe (IFF) systems,
acoustic sensors, advanced synthetic cockpits, cockpit video monitors, mission computing, command and control systems and integrated avionics
and electronics systems. Key programs include the Integrated Avionics System, the Fiber Optics Acoustic Sensors,
and the AN/TYQ-23 Aircraft and Command and Control System.
Financial results for Northrop Grumman's Electronic Systems segment were as follows:
Electronic Systems sales for 2012 decreased $422 million, or 6%, as compared with 2011. The decrease was largely due to lower volume of approximately $160 million on infrared countermeasures sales and approximately $250 million lower postal automation sales, including approximately $150 million from Northrop Grumman's decision to de-emphasize its domestic postal automation business. These declines, as well as declines due to troop draw down and reduced overseas contingency operations funding, were partially offset by approximately $190 million higher volume on space programs.
Operating income for 2012 increased $117 million, or 11%, and the operating margin increased to 17.1 % from 14.5%. The higher operating income and operating margin reflect approximately $160 million of additional performance improvements over 2011, primarily on several combat avionics programs. These performance improvements include the effect of unfavorable adjustments of approximately $50 million on a domestic postal automation program in the prior year that did not recur in 2012.
Information Systems, headquartered in McLean, Virginia, is a leading global provider of advanced solutions for the DoD, national intelligence,
federal civilian, state and local agencies, and commercial customers. Products and services are focused on the fields of command, control,
communications, computers and intelligence; air and missile defense; airborne reconnaissance; intelligence processing; decision support systems;
cyber security; information technology; and systems engineering and integration.
The segment consists of three business areas:
Defense Systems; Intelligence Systems; and Civil Systems.
Defense Systems is a major end-to-end provider of net-enabled Battle Management C4ISR systems, decision superiority, and mission-enabling solutions and services in support of the national defense and security of the United States and its allies. The division is a prime developer and integrator of many of the DoD's programs-of-record, particularly for command and control and communications for the U.S. Air Force, U.S. Army, U.S. Navy, and Joint Forces. Major products and services include Enterprise Infrastructure and Applications, Mission Systems Integration, Military Communications & Networks, Battle Management C2 and Decision Support Systems, Global and Operational C2, Ground and Maritime Combat Systems, Air and Missile Defense, Combat Support Solutions and Services, Defense Logistics Automation, and Force and Critical Infrastructure Protection. Systems are installed in operational and command centers world-wide and across all DoD services and joint commands.
Intelligence Systems is focused on the delivery of world-class systems and services to the U.S. intelligence community. Major offerings include Studies & Analysis, Systems Development, Enterprise IT, Prime Systems Integration, Products, Sustainment, and Operations and Maintenance. The division focuses on several mission areas including Airborne ISR, Geospatial Intelligence, Ground Systems, Integrated Intelligence and dynamic Cyber defense. Sustaining and growing the business in today's market mandates sharing meaningful information across agencies through development of cost effective systems that are responsive to mutual requirements. Intelligence Systems is also creating new responsive capabilities leveraging existing systems to provide solutions to customer needs through labs and integration centers.
Civil Systems provides specialized information systems and services in support of critical government civil missions, such as homeland security,
public health, cyber security, air traffic management and public safety. Primary customers are federal civilian, state and local agencies,
and the U.S. Postal Service. Civil Systems develops and implements solutions that combine a deep understanding of civil government domains
with core expertise in prime systems integration, enterprise applications development, and high-value IT services including cyber security,
identity management and advanced network communications.
Financial results for Northrop Grumman's Information Systems segment were as follows:
Information Systems sales for 2012 decreased $565 million, or 7%, as compared with 2011, with no single program driving a significant portion. The decline in sales reflects the termination or wind-down on a number of programs, including the Joint Tactical Radio Systems Airborne, Maritime and Fixed (JTRS AMF), Installation Kits (I-KITS), Enterprise Network Management (ENM) and F-22 programs, partially offset by higher volume of approximately $110 million on the Encore II Information Technology support program, as well as higher volume on the Air and Space Operations Center, Enterprise System Development, and Ground Combat Vehicle programs. Further reducing sales was lower volume on restricted programs, as well as the sale of the County of San Diego IT outsourcing contract and the sale of Park Air Norway, which together reduced sales by approximately $100 million, as compared to 2011.
Operating income for 2012 decreased $5 million, or 1%, and the operating margin increased to 10.3% from 9.7%. The higher operating margin is primarily driven by performance improvements across a number of contracts, which largely offset the impact of lower volume on operating income.
Technical Services, headquartered in Herndon, Virginia, is a provider of logistics, infrastructure,
and sustainment support, while also providing a wide array of technical services including training and simulation.
The segment consists of three business areas:
Defense and Government Services; Training Solutions, and Integrated Logistics and Modernization.
Defense and Government Services provides maintenance, repair, and overhaul (MRO) of combat vehicles, engineering and high technology services for nuclear security and space missions, civil engineering work, military range work, launch services, and range-sensor-instrumentation operations. The division's customer base includes the U.S. Army, Department of Energy, the DoD, NASA, and the intelligence community.
Training Solutions provides training across the live, virtual and constructive domains to both the U.S. military and International peacekeeping forces, designs and develops future conflict training scenarios, and provides U.S. warfighters and allies with tactics, techniques and procedures to be successful on the battlefield. This business area also offers diverse training applications ranging from battle command to professional military education. Primary customers include the DoD, Department of State, and Department of Homeland Security.
Integrated Logistics and Modernization provides complete life cycle product and weapon system sustainment and modernization.
The business area focuses on providing direct support to warfighters while delivering aircraft and subsystem maintenance, repair, and overhaul (MRO);
modernization of those platforms and systems; supply chain management services, warehousing and inventory transportation, field services,
and on-going weapons maintenance and technical assistance. The business area specializes in quick reaction capability
and deployed operations in support of customers. Key programs include EA-PUP, Hunter, Triton, MQ-8 Fire Scout,
Financial results for Northrop Grumman's Technical Services segment were as follows:
Technical Services sales for 2012 decreased $174 million, or 5%, as compared with 2011. The decrease was primarily due to reduced volume from portfolio shaping of approximately $70 million as Northrop Grumman focuses its operations into core areas, lower KC-10 logistics activity of approximately $60 million and lower ICBM logistics and modernization activity of approximately $50 million.
Operating income for 2012 increased $8 million, or 3%, and operating margin increased to 8.9% from 8.0%. The higher operating income and operating margin were primarily due to improved performance on the KC-10 program, partially offset by lower sales volume as described above.
Revenues ('12): $25,218M -4.5%
R&D ('12): $520M -4.2%
Net Profit ('12): $1,978M -6.6%
CAPEX ('12): $331M -32.2%
Aerospace Sector:Major Diversified OEM
Northrop Grumman Products:
Tactical and long-range strike aircraft systems; Unmanned Aircraft Systems (UAS); Missile systems; Spacecraft systems; Electronic and communications payloads; Airborne early warning, surveillance, battlefield management, and electronic warfare systems; Advanced space-based radar systems; Electro-optical early warning and surveillance systems; Fire Control Radars (FCR); Sensor and protection systems; Integrated electronic warfare capability, communications, and intelligence systems; Unattended ground sensors; Automatic test equipment; Advanced threat simulators; Anti-ship missile defense and surveillance radars; Propulsion equipment and missile launch systems; Fiber optic acoustic sensors; Inertial sensors and navigation systems; Fire control radars, Multi-function apertures and pods; Airborne EO/IR targeting systems; Laser/electro-optical systems; Net-enabled Battle Management C4ISR systems; Studies & Analysis; Systems Development; Enterprise IT; Prime Systems Integration; Operations and maintenance services; Space launch services; Training Solutions; Product support and weapons system sustainment.
Northrop Grumman's Major DoD Defense Programs:
| B-1B Lancer
| B-2A Spirit
| E-2D |
No information available.
|Sales 2008-2012||Net Income 2008-2012||R&D Spending 2008-2012||# Employees 2008-2012|