LOS ANGELES, April 1, 2002 -- Northrop Grumman Corporation (NYSE:NOC) announced today that it has successfully completed the stand up of Newport News Shipbuilding as a fully integrated sector of the company.
Newport News' policies and operating practices now fully comply with the requirements of Northrop Grumman. These include a wide range of policies and procedures, including common financial reporting, program oversight and risk management, human resources practices and access to the company's electronic network, among others. The builder of nuclear-powered aircraft carriers and submarines now operates as one of the company's six sectors and is led by Thomas C. Schievelbein, corporate vice president and president of Newport News.
Newport News sector will continue to work closely with Northrop Grumman's Ship Systems sector and other corporate elements to drive future cost savings and to achieve synergies in shared services and common procurement practices.
"Today marks another key milestone in our business integration efforts, providing further testimony to our ability to swiftly and efficiently integrate acquired companies," said Kent Kresa, Northrop Grumman chairman and chief executive officer. "This core competency allows us to reap the benefits of diverse programs and capabilities while honoring legacy company traditions and best practices along the way. I am pleased to report that all the companies and businesses acquired in 2001 have been successfully integrated into Northrop Grumman," Kresa concluded.
In 2001, the company acquired Litton Industries, Newport News Shipbuilding and the Electronics and Information Systems Group of Aerojet General Corp. Since 1993, Northrop Grumman has acquired 15 companies, growing from about $5 billion in annual revenues to an estimated $18 billion for 2002, and from about 30,000 employees to nearly 100,000.
"Northrop Grumman employs a rigorous methodology involving several hundred process steps for the integration of acquired businesses," said Ronald D. Sugar, Northrop Grumman president and chief operating officer. "The stand up of the Newport News sector was accomplished without a hitch. We look forward to the challenge of operating all our businesses to achieve the outstanding results they are capable of generating," Sugar added.
Northrop Grumman Corporation is an $18 billion, global defense company with its worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and nuclear and non-nuclear shipbuilding and systems. With nearly 100,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.