Northrop Grumman (NOC)

Northrop Grumman (NYSE:NOC) | Products & Business Units

Top Menu Background

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 Hawthorne, California in 1939, as Northrop Aircraft Incorporated and was reincorporated in Delaware in 1985, as Northrop Corporation. Northrop Aircraft Incorporated was a principal developer of the flying wing technology, including the B-2 Stealth Bomber. The company developed into one of the largest defense contractors in the world through a series of acquisitions, as well as organic growth. In 1994, the company acquired Grumman Corporation, after which time the company was renamed Northrop Grumman Corporation. Grumman was a leading military aircraft systems integrator and builder of the Lunar Module that first delivered men to the surface of the moon. In 1996, Northrop Grumman acquired the defense and electronics businesses of Westinghouse Electric Corporation, a world leader in the development and production of sophisticated radar and other electronic systems for the nation's defense, civil aviation, and other international and domestic applications. In 2001, Northrop Grumman acquired Litton Industries, a global electronics and information technology company, and one of the nation's leading full service shipbuilders. In 2002, Northrop Grumman acquired TRW Inc., a leading developer of military and civil space systems and satellite payloads, as well as a leading global integrator of complex, mission-enabling systems and services. 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:

Aerospace Systems
Electronic Systems
Information Systems
Technical Services.



The following table highlights Northrop Grumman's sales from 2011 to 2013 by segment:
Northrop Grumman's Segment Sales



A description of the business of each of the company's segments is set forth below.


Aerospace Systems

Top



Aerospace Systems, headquartered in Redondo Beach, California, is a leader in the design, development, integration and production of manned aircraft, unmanned systems, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems. Aerospace Systems' customers, primarily U.S. Government agencies, use these systems in mission areas including intelligence, surveillance and reconnaissance (ISR), communications, battle management, strike operations, electronic warfare, earth observation, satellite communications, space science and space exploration.

The segment consists of four business areas:
Unmanned Systems; Military Aircraft Systems; Space Systems; and Strategic Programs & Technology.



Unmanned Systems


Unmanned Systems designs, develops, manufactures, and integrates ISR unmanned systems for tactical and strategic missions. Key ISR programs include the RQ-4 Global Hawk reconnaissance system, a proven high-altitude long-endurance system providing near real-time high resolution imagery of large geographical areas; the MQ-4C Triton aircraft system providing real-time ISR over vast ocean and coastal regions; the trans-Atlantic North Atlantic Treaty Organization (NATO) Alliance Ground Surveillance (AGS) system for multinational theater operations, peacekeeping missions, and disaster relief efforts; the MQ-8 Fire Scout aircraft system providing unprecedented situational awareness and precision targeting support; the Navy Unmanned Combat Air System (UCAS) demonstrating an unmanned combat air vehicle for carrier-based operations; and the Common Mission Management System, providing high performance service based on ground control solutions enabling unmanned mission capabilities.



Military Aircraft Systems


Military Aircraft Systems designs, develops, manufactures, and integrates airborne C4ISR, electronic warfare mission systems, and long range strike and tactical aircraft systems. Key airborne C4ISR programs include the E-2D Advanced Hawkeye and E-8C Joint Surveillance Target Attack Radar System (JSTARS). Electronic warfare includes the EA-18G Growler (AN/ALQ-218 jamming receiver) and EA-6B Prowler airborne electronic attack weapon systems in addition to the design, development, and integration of laser weapon systems for air, sea, and ground platforms. This business area also designed, developed and manufactured the B-2A Spirit bomber and now provides sustainment and upgrade services for the B-2, 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


Space Systems  designs, develops, manufactures, and integrates spacecraft systems, subsystems, sensors and communications payloads in support of space science and C4ISR. Key programs include the James Webb Space Telescope, a large infrared telescope being built for the National Aeronautics and Space Administration (NASA) that will be deployed in space to study the origins of the universe; Advanced Extremely High Frequency (AEHF) payloads providing survivable, protected communications to U.S. forces; and restricted programs.



Strategic Programs & Technology


Strategic Programs & Technology creates and matures advanced technologies and innovative concepts to provide affordable solutions addressing current and future customer needs. The Strategic Programs & Technology business area maintains a broad portfolio of contracts ranging from development of components to prototypes to initial operational systems across the air, land and space domains.

     Financial results for Northrop Grumman's Aerospace Systems segment were as follows:
Performance of Northrop Grumman's principal lines of business

Aerospace Systems sales for 2014 were comparable to 2013. Aerospace Systems had lower sales in unmanned, space and manned military aircraft programs. The decrease in unmanned programs reflects declines of $136 million on Global Hawk due to lower production activity and $111 million on Fire Scout as a result of lower development activity. These declines were partially offset by $135 million of higher volume on the NATO Alliance Ground Surveillance (AGS) program. The decrease in space programs was mainly due to lower volume on the James Webb Space Telescope (JWST) and Advanced Extremely High Frequency (AEHF) programs. The decrease in manned military aircraft programs was primarily the result of lower volume on the Joint Surveillance Target Attack Radar System, F-35 and B-2 programs, partially offset by higher volume of $87 million on the E-2D Advanced Hawkeye program.

Operating income for 2014 increased $100 million, or 8%, and operating margin rate increased to 13.2%, from 12.1%.


Electronic Systems

Top



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 the U.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, electronic warfare systems, air defense radars and management systems, navigation systems, communications systems, marine power and propulsion systems, space systems and logistics services.

The segment consists of three business areas:
Intelligence, Surveillance, Reconnaissance & Targeting Systems, Land & Self Protection Systems, and Navigation & Maritime Systems.



Intelligence, Surveillance, Reconnaissance & Targeting 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), airborne electro-optical/infrared (EO/IR) targeting systems and postal automation systems. Key programs include airborne fire control radars such as the Scalable Agile Beam Radar (SABR), which provides affordable Active Electronically Scanned Array (AESA) capabilities for domestic and international fighters, 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 (MESA) for Airborne Early Warning & Control (AEW&C), which provides air-to-air and air-to-surface coverage; and space systems such as the Space-Based Infrared System (SBIRS), which provides data for missile surveillance, missile defense, technical intelligence and battlespace characterization.



Land & Self Protection Systems


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 air defense and multi-function radars, situational awareness systems, laser/electro-optical systems and digitized and open architecture cockpits and applications. Key programs include the Ground/Air Task Oriented Radar (G/ATOR), which is a ground-based multi-mission radar designed to detect and track a wide variety of threats; the AN/TPS-78 ground-based radar, which provides air defense and air surveillance for the global market; the Large Aircraft Infrared Countermeasures (LAIRCM), which is an infrared countermeasure system designed to protect aircraft against man-portable (shoulder-launched) infrared-guided surface-to-air missiles; and the AN/APR-39, which provides rapid identification and continuous radar threat warning for today's complex battlefields.



Navigation & Maritime Systems


Navigation & Maritime Systems delivers products and services to domestic and international defense, civil and commercial customers supporting smart navigation, shipboard radar surveillance, ship control, machinery control and 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, nuclear reactor instrumentation and control and acoustic sensors for submarines and aircraft carriers; inertial navigation systems for all domains (air, land, sea, and space); and embedded Global Positioning Systems. Key programs include the AN/SPQ-9B Anti-Ship Missile Defense radar, which provides the US Navy's cruisers and destroyers with situational awareness and contact information from aircraft, cruise missiles, surface vessels and periscope detection; inertial navigation and positioning products for a range of platforms including ships, aircraft, spacecraft and weapons systems.

In addition to the product and service lines discussed above, the Electronic Systems segment also includes Advanced Concepts & Technologies (AC&T), which develops next-generation systems to position the segment in key developing markets. AC&T focuses on understanding customer mission needs; conceiving affordable, innovative and open solutions; and demonstrating the readiness and effectiveness of Electronic Systems' products. AC&T focuses on the following enterprise-wide and cross cutting technology development thrust areas: RF systems; EO/IR systems; multi-function systems; modular open systems architectural approaches and designs; precision navigation and timing capabilities; and secure and trusted solutions.

     Financial results for Northrop Grumman's Electronic Systems segment were as follows:
Performance of Northrop Grumman's principal lines of business

Electronic Systems sales for 2014 decreased $198 million, or 3%, as compared with 2013. Lower sales are principally due to lower volume for land and self-protection programs, including lower deliveries of $174 million on infrared countermeasures and laser systems; lower volume for domestic intelligence, surveillance, reconnaissance and targeting programs, including $93 million of lower deliveries on combat avionics; and $109 million of lower volume for navigation and maritime programs. The declines were partially offset by higher sales of $178 million on international programs.

Operating income for 2014 decreased $78 million, or 6%, and operating margin rate decreased to 16.5% from 17.1%. Operating income and margin rate for 2014 declined primarily due to a reduction in net favorable adjustments, lower volume and the absence in 2014 of the benefit from the reversal of a $26 million non-programmatic risk reserve in 2013.


Information Systems

Top



Information Systems, headquartered in McLean, Virginia, is a leading provider of advanced solutions for the DoD, national intelligence, federal civilian, state, international and commercial customers. Products and services focus on the fields of command and control (C2), communications, cyber, air and missile defense, intelligence processing, civil security, health technology and government support systems.

The segment consists of seven business areas: Cyber, C2, Communications, ISR, Integrated Air and Missile Defense (IAMD), Civil and Health.



Cyber


Cyber provides full spectrum solutions that address cyber security threats, cyber mission management and special cyber systems. Cyber offerings span intelligence, defense, federal, state, international and commercial customers, providing dynamic cyber defense and specialized cyber systems and services in support of critical government missions. This business specializes in active defense, malware detection, analytics platforms and large scale cyber solutions for national security applications.



C2


C2 provides net-enabled C2, battle management, command center integration, combat support systems, mission-enabling solutions and critical infrastructure protection systems. C2 systems support operations, managing assets and forces employed to accomplish national and military missions, and optimizing legacy platforms, sensors and weapons systems. These systems are installed in operational and command centers world-wide and across DoD services, joint commands and the international security community.



Communications


Communications provides the underlying networks, network management, gateway systems and radio frequency devices that support national military C4ISR missions and help make C4ISR more integrated and interoperable. Communications capabilities include gateways and products for aircraft interoperability, multi-function avionics, software defined radios and protected communications.



ISR


ISR delivers systems and services in Signals Intelligence (SIGINT), airborne reconnaissance, geospatial intelligence and data fusion, specializing in the collection, processing, and exploitation of data to achieve a deep understanding of the environment. Offerings include intelligence integration, large scale information processing, multi-source intelligence, big data applications and geo-location techniques.



IAMD


IAMD provides integration and interoperability of net-enabled battle management, sensors, targeting and surveillance systems, air and missile defense C2, missile warning systems and critical situational awareness for weapons and fire control systems. This business provides solutions for both domestic and international customers, advanced IAMD integration with land and air assets, and cost effective flexible architectures.



Civil


Civil provides civilian IT solutions, civil financial operations, public safety systems, law enforcement and state programs. This business is a provider in global homeland security and public safety, federal law enforcement information sharing and analysis, and IT systems and services that enable civil missions and satisfy infrastructure and back office requirements.



Health


Health provides healthcare expertise combined with IT capabilities to support effective healthcare services and efficient health and human services systems. Capabilities include benefits management, population health, clinical data integration and health analytics. This business provides system engineering and integration, affordable national healthcare IT, and solutions to meet health and human services challenges.


Key programs for the Information Systems segment include the Joint National Integration Center Research and Development (JRDC) contract, which supports the technical infrastructure, modeling and simulation, test and evaluation, and management of the Missile Defense Agency (MDA) network at multiple sites; the Battlefield Airborne Communications Node (BACN), a high-altitude, airborne communications and information gateway system that provides situational awareness and C2 coordination between warfighters and commanders; the Communications, Navigation and Identification (CNI) integrated avionics system for the F-35 Joint Strike Fighter based on software-defined technology with advanced capabilities for interoperability; and the Integrated Air and Missile Defense Battle Command System (IBCS), a C2 system that delivers a single, unambiguous view of the battlespace with enhanced aircraft and missile tracking improving the ability of combatant commanders and air defenders to make critical decisions within seconds.

     Financial results for Northrop Grumman's Information Systems segment were as follows:
Performance of Northrop Grumman's principal lines of business

Information Systems sales for 2014 decreased $374 million, or 6%, as compared with 2013. Sales principally declined as a result of lower volume of $294 million on C2 programs and $62 million on Communications programs due to in-theater force reductions, reduced funding levels and the wind-down of various programs.

Operating income for 2014 decreased $22 million, or 3%, and operating margin rate increased to 9.8% from 9.6%. The lower operating income is primarily a result of lower sales. The higher operating margin rate reflects additional operating income resulting from improved performance.


Technical Services

Top



Technical Services, headquartered in Herndon, Virginia, is a leader in innovative and affordable logistics, modernization and sustainment support and also provides an array of other advanced technology and engineering services, including space, missile defense, nuclear security, training and simulation.

The segment consists of two business areas:
Integrated Logistics and Modernization; and Mission Solutions and Readiness.



Integrated Logistics and Modernization


Integrated Logistics and Modernization provides complete life cycle support and weapon system sustainment and modernization products and services, and provides direct support to warfighters while delivering aircraft and subsystem maintenance, repair and overhaul (MRO). Competencies include aircraft and electronics sustaining engineering, supply chain management services, manned and unmanned weapons systems deployed logistics support, field services and on-going maintenance and technical assistance, and delivering rapid response in support of global customers. Key programs include KC-10 Contractor Logistics Support (CLS), which provides total weapons systems CLS to the Air Force for the entire fleet of 59 KC-10 aircraft; Intercontinental Ballistic Missile (ICBM) Systems, which provides systems engineering and integration for the land-based leg of the U.S. nuclear deterrent force; UK Airborne Warning and Control System (AWACS), which provides through life management of the UK Royal Air Force fleet of E-3D AWACS aircraft; KC-30A Multi-Role Tanker Transport (MRTT) which provides through life support for the Royal Australian Air Force (RAAF) KC-30A air to air refueling aircraft; and AN/AAQ-24 LAIRCM, which provides repair, testing, component spare procurement, logistics, and data collection related to directional infrared counter measures systems used on multiple fixed and rotary wing aircraft.



Mission Solutions and Readiness


Mission Solutions and Readiness provides realistic and comprehensive training through live, virtual and constructive domains, innovative and diverse training applications ranging from battle command to professional military education, sustainment and modernization of tactical vehicles, high technology and engineering services in the areas of nuclear security, space and launch services, civil engineering and military range-sensor-instrumentation operations. Key programs include Ministry of the National Guard Training Support (MNG TSC), through Northrop Grumman's interest in a joint venture, which provides equipment fielding, training and maintenance, simulator training and operations, tactical exercise development, logistics and operations support and English language training to the Saudi Arabian National Guard; the Mission Command Training Program (MCTP), the Army's premier leadership and staff training exercise program at the tactical and operational level; and Fort Irwin Logistics Services Support, which provides a full range of logistics support services and operates a large-scale maintenance and repair program of both tracked and tactical wheeled vehicles.

     Financial results for Northrop Grumman's Technical Services segment were as follows:
Performance of Northrop Grumman's principal lines of business

Technical Services sales for 2014 decreased $44 million, or 2%, as compared with 2013. The decrease was primarily due to lower volume on the InterContinental Ballistic Missile (ICBM), Hunter and Combined Tactical Training Range programs, which were partially offset by growth in international sales, principally as a result of the acquisition of Qantas Defence Services Pty Limited (QDS) in the first quarter of 2014.

Operating income and margin rate for 2014 were comparable to 2013.

Company Information

Revenues ('14): $23,979M -2.8%

R&D ('14): $569M +12.2%

Net Profit ('14): $2,069M +6.0%

CAPEX ('14): $561M +54.1%

Northrop Grumman - OEM

Products News Subsidiaries Acquisitions Competitors Customers R&D Spending 5-Year Financials

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:


| AEHF | DoD Prime ContractorAH-64 | B-1B Lancer | DoD Prime ContractorB-2A Spirit | DMSP | DoD Prime ContractorEA-6B | EA-18G | DoD Prime ContractorE-2D |
| E-3 | F-16 | F/A-18E/F | F-22 | F-35 Lightning II | DoD Prime ContractorGMD | DoD Prime ContractorMQ-8 Fire Scout |
| DoD Prime ContractorJSTARS | DoD Prime ContractorRQ-4 Global Hawk | DoD Prime ContractorMQ-4C Triton | SBIRS | Trident II | SSN 774 |

Commercial Programs:


No information available.

Sales 2010-2014 Net Income 2010-2014 R&D Spending 2010-2014 # Employees 2010-2014

Company Performance Company News SEC Filings Press Releases
Products and Business Segments
Customers
Competitors and Competition
Research Spending and R&D Activities
Key Raw Materials and Components
Subsidiaries
Acquisitions and Divestures
Defense Budget Forecast
Social Networking
Market Data Background
No Flash