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:
The following table highlights Northrop Grumman's sales from 2011 to 2013 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.
Strategic 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 2013 were slightly higher than 2012, due to higher volume on manned military aircraft programs, offset by lower volume on unmanned and space programs. The increase in manned military aircraft programs reflects higher sales of $107 million from increased deliveries on the F-35 program, as well as higher volume on the B-2 and E-2D Advanced Hawkeye programs, partially offset by lower volume on various other programs. The decrease for unmanned programs reflects lower sales of $295 million on the Global Hawk program largely due to ramp-down on sustainment, support and logistics contracts, partially offset by higher sales of $187 million on the NATO Alliance Ground Surveillance (AGS) program resulting from ramp-up activities. The decrease in space programs reflects lower volume for restricted programs due to ramp-down activities, and higher volume on the James Webb Space Telescope (JWST) and Advanced Extremely High Frequency (AEHF) programs.
Operating income and operating margin rate for 2013 were comparable to 2012. Operating income and operating margin rate also reflect the impact of a forward loss recognized on a restricted program, which was offset by the continuing effect of higher contract margin rates across the segment principally related to prior net favorable adjustments.
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 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), Multi-Function Active Sensor (MFAS) for the U.S. Navy's MQ-4C Triton, Multi-Platform Radar Technology Insertion Program; and space systems such as the Space-Based Infrared System (SBIRS).
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 (G/ATOR), 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; 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 (VADER).
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 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.
In addition to the product and service lines discussed above, the Electronic Systems segment also includes an Advanced Concepts & Technologies Division (AC&TD), which develops next-generation systems to position the segment in key developing markets. AC&TD focuses on understanding customer mission needs; conceiving affordable, innovative and open solutions; and demonstrating the readiness and effectiveness of Electronic Systems' products. AC&TD 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:
Electronic Systems sales for 2013 increased $199 million, or 3%, as compared with 2012. The increase was due to higher sales on international programs of $244 million and space programs, partially offset by lower sales on navigation and maritime systems programs of $132 million due to decreased deliveries, as well as lower volume on laser systems programs associated with in-theater force reductions.
Operating income for 2013 increased $39 million, or 3%, as compared with 2012, consistent with the higher sales volume described above. Operating margin rate was comparable with 2012, and reflects higher margin rates on the company's current portfolio of programs, a reduction in net favorable adjustments and the reversal of a $26 million non-programmatic risk reserve.
Information Systems, headquartered in McLean, Virginia, is a leading global provider of advanced solutions for the DoD, national intelligence,
federal civilian and state agencies, commercial and international customers. Products and services focus on the fields of command and control (C2),
communications, cybersecurity, air and missile defense, intelligence processing, civil security, health information technology,
government support systems and systems engineering and integration.
Within C4ISR, the segment is a major end-to-end provider of net-enabled C2, net-enabled Battle Management, communications and network gateway systems, mission-enabling solutions and decision superiority. Systems are installed in operational and command centers world-wide and across DoD services, joint commands and the international security community. The segment also delivers intelligence-related systems and services to the U.S. Government in several mission areas including Signals Intelligence (SIGINT) systems, geospatial intelligence and multi-source intelligence data fusion.
Cybersecurity offerings span intelligence, defense, federal, civilian, state and international customers, providing dynamic cyber defense and specialized cyber systems and services in support of critical government missions. Applications are predominantly for high end intelligence and defense missions, but also include health, homeland security, public safety, civil, financial and commercial applications. Most intelligence community programs are restricted. Defense and civil cybersecurity customers include the DoD, intelligence community, Department of Homeland Security, Centers for Disease Control and select state and international agencies.
The segment consists of four business areas: Cyber Solutions, Defense Systems, Federal & Defense Technologies, and Intelligence Systems.
Cyber Solutions provides cyber defense, exploitation and full spectrum solutions that address cybersecurity threats, cyber mission management, cross function/agency cyber management and special cyber systems that target adversaries of the United States.
Defense Systems is a major end-to-end provider of net-enabled C2, communications, networks and gateways, decision support systems, command center integration, combat support systems and critical infrastructure protection systems.
Federal & Defense Technologies is an integrator of air and missile defense systems and a major provider of net-enabled Battle Management C4 systems, defense enterprise information technology (IT) and civilian IT solutions.
Intelligence Systems is focused on the delivery of intelligence-related systems and services in airborne reconnaissance,
SIGINT, geospatial and multi-source data fusion.
Key programs include the Joint National Integration Center Research and Development Contract (JRDC), which supports the technical infrastructure, modeling and simulation, test and evaluation, and management of the Missile Defense Agency 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; and the Consolidated Afloat Networks and Enterprise Services (CANES) program, which consolidates US Navy C4 intelligence, computing and network infrastructure for ships, submarines and shore C2 facilities.
Financial results for Northrop Grumman's Information Systems segment were as follows:
Information Systems sales for 2013 decreased $760 million, or 10%, as compared with 2012. The sales decline includes a $98 million impact for the transfer of intercompany efforts to the company's corporate shared services organization. Excluding the transfer, 2013 sales declined 9% due to lower funding levels, including the impacts of sequestration, and lower volume for programs impacted by in-theater force reductions and contract completions.
Operating income for 2013 decreased $128 million, or 17%, as compared with 2012. Operating margin rate decreased to 9.6% in 2013 from 10.3% in 2012. Lower operating income and operating margin rate were primarily due to the lower sales volume described above and a $73 million reduction in net favorable adjustments compared with the prior year.
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 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 Intercontinental Ballistic Missile (ICBM) Systems, which provides systems engineering and integration for the land-based leg of the United States nuclear deterrent force; Fort Irwin Logistics Services Support; and Combined Tactical Training Ranges (CTTR), which provides engineering, operations and maintenance support to facilitate a live and virtual multi-service aircrew tactical training requirement as defined by the Fleet Response Training Plan (FRTP).
Training Solutions provides realistic and comprehensive training through live, virtual and constructive domains, ranging from senior military leadership to warfighters, for both U.S. and international peacekeeping forces. The business area designs and develops future conflict training scenarios and provides warfighters and allies with live, virtual and constructive training programs. The business area has supported the training of America's senior battlefield commanders for every major contingency beginning with Gulf War I through operations today. The business area also offers innovative and diverse training applications ranging from battle command to professional military education. Key programs include the Saudi Arabian National Guard (SANG), 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 Joint Coalition Warfighting Center (JWFC), which designs and executes distributed joint and multinational exercises and training events, joint doctrine development and joint training analysis for the Joint and Coalition Warfighting Center; and the Mission Command Training Program (MCTP), the Army's premier leadership and staff training exercise program at the tactical and operational level.
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;
UK Airborne Warning and Control System (AWACS),
which provides through life management of the UK Royal Air Force fleet of E-3D AWACS aircraft;
and AN/AAQ-24 Large Aircraft Infrared Counter Measures (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.
Financial results for Northrop Grumman's Technical Services segment were as follows:
Technical Services sales for 2013 decreased $176 million, or 6%, as compared with 2012. The decrease was primarily due to lower sales of $127 million on the Intercontinental Ballistic Missile (ICBM) and integrated logistics and modernization programs, as well as portfolio shaping efforts.
Operating income for 2013 decreased $6 million, or 2%, as compared with 2012. Operating margin rate increased to 9.2% in 2013 from 8.9% in 2012. Lower operating income was driven by the lower sales volume described above, partially offset by higher operating margin rate primarily due to improved performance across a number of programs.
Revenues ('13): $24,661M -2.2%
R&D ('13): $507M -2.5%
Net Profit ('13): $1,952M -1.3%
CAPEX ('13): $364M +10.0%
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 2009-2013||Net Income 2009-2013||R&D Spending 2009-2013||# Employees 2009-2013|