A Note From Our President & Founder Jim Garrettson
The worldâs fifth-largest defense contractor received a double-billing of good news this week via third quarter financial results that beat The Street and a landmark contract win to set its course for decades.
On Wednesday, Northrop Grumman reported third quarter earnings and sales figures that exceeded Wall Street analyst expectations and said year-over-year revenue numbers grew in three of its four business segments.
Chairman and CEO Wes Bush subsequently updated investors on the companyâs plan to consolidate from four segments to three on Jan. 1 and sought to halt speculation the company could spin off or sell the future technology services sector.
âIt is not⦠over the years, we have deemphasized commodity-based services and focused our TS sector on lifecycle support and modernization of systems and platforms as well as advanced training.â
Northrop will take in up to $21.4 billion during the engineering phase and could receive up to $80 billion over decades if the Air Force purchases the maximum 100 bombers.
Bush did not have much to tell investors on the bomberâs specifics but offered this perspective on its implications for the defense industrial base in light of sector consolidation in the 1990s and again in the present time.
âI do not believe that we are in a situation that perhaps we were in in the 1990s where single program decisions can cause precipitous actions by any of the players in the industrial base. We are today in a very different configuration because of the consolidation that occurred through the 1990s and the early part of the last decade.â
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Continue reading below for some of the other major GovCon developments from the week.
Chris Kubasik Joins L-3 as President, COO
Kubasik previously led professional services firm Seabury Advisory Group as president and CEO and is also a former Lockheed Martin president and COO.
Wes Bush, former CEO of Northrop Grumman (NYSE: NOC), has been appointed a member of the board of directors and an adviser at venture capital firm Red Cell Partners. Red Cell said Friday his addition to the board to extend the company’s defense sector connection and increase its ability to bring new technology to the
Consulting firm McAleese & Associates has released a new report listing several defense programs under the âwatchlistâ of Kathy Warden, president and chief operating officer of Northrop Grumman (NYSE: NOC). Jim McAleese, founder and principal at McAleese & Associates, said those include the U.S. Air Forceâs Ground Based Strategic Deterrent competition, Overhead Persistent Infrared Geosynchronous, U.S. Navy‘s