About Orbital Sciences Corporation
Northrop Grumman is well equipped to defend its high place in the defense sector. As one of the world's top military contractors (behind
Northrop Grumman operates through three segments. Aerospace Systems (around 40%), Mission Systems (40%), and Technology Services (almost 20%).
Northrop Grumman owns or leases about 34 million sq. ft. of floor space at some 445 separate locations, primarily in the US. The company has operations in the US, Germany, Italy, the UK, Australia, and France.
Its segments are headquartered in Redondo Beach, California (Aerospace Systems); Linthicum, Maryland (Mission Systems); and Herndon, Virginia (Technology Services).
Sales and Marketing
The company serves domestic and international defense, civil, and commercial customers. The US government accounts for almost 85% of its revenues. Outside the US, the company conducts direct commercial sales with governments and markets its products through television advertisements.
Northrop Grumman's revenues climbed 4% from $23.5 billion in 2015 to $24.5 billion in 2016, primarily due to higher sales from Aerospace Systems and Mission Systems.
Aerospace Systems sales increased 9% due to higher volume on its Manned Aircraft and Autonomous Systems programs. Manned Aircraft sales also increased primarily due to higher restricted volume, increased F-35 deliveries, and production ramp-up on its E-2D program.
Mission Systems sales jumped by 2% in 2016 due to higher volume from its Sensors and Processing and Advanced Capabilities programs. This was attributed to higher volume on communications programs, including the Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare program and ramp-up on its G/ATOR program.
Like its revenues, Northrop Grumman's profits increased 11% from almost $2 billion in 2015 to peak at $2.2 billion in 2016, its highest total in at least 10 years. This was attributed to the increased revenue coupled with a lower effective tax rate. These factors, along with a decrease in pension contributions, also increased its operating cash flow by 30% from $2.2 billion in 2015 to $2.8 billion 2016.
The wars in Afghanistan and Iraq, and resulting military spending, buoyed results for Northrop Grumman and other military contractors, but as the US draws down its overseas defense presence and reduces its military budget more generally, Northrop Grumman is positioning itself to serve the defense department's new focuses. The company's outlook anticipates increased military emphasis in such areas as intelligence, surveillance, and reconnaissance (ISR) systems, cyber warfare, long-range strike, directed-energy applications, missile defense, and satellite communications systems.
Northrop Grumman also grows by making massive acquisitions. In potentially one of its largest acquisitions to date, Northrop Grumman in 2017 agreed to buy Orbital ATK, a maker of rockets, satellites, and missile-defense systems, for about $7.8 billion and assumption of about $1.4 billion in debt.
Mergers and Acquisitions
In late 2017, Northrop Grumman agreed to buy Orbital ATK, a maker of rockets, satellites, and missile-defense systems, for about $7.8 billion and assumption of about $1.4 billion in debt. The deal, the biggest in the defense sector in several years, would extend Northrop Grumman's capabilities into launchers, satellites, and other aerospace areas. Orbital has contracts with the US Army and NASA and is one of two companies contracted to fly cargo to the International Space Station. Northrop Grumman plans to make Orbital ATK its fourth business segment when the acquisition is concluded, which is expected in the first half of 2018.
45101 WARP DR
Dulles, VA 20166-6874
Phone: 1 (703) 406-5000
Employer Type: Privately Owned
Sr Vp Human Resources: Pamela J Lupien
Exc Vp Gn Mgr Sys Intgrtn: Daniel Robert
Svp, Chief Human Resources Officer: Christine Wolf
Employees (This Location): 900
Employees (All Locations): 12,000
El Segundo, CA
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Wallops Island, VA