Northrop Grumman
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Northrop Grumman Corporation (Template:Nyse) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor in the world<ref>{{cite web |url=http://www.defensenews.com/content/features/2005chart1.html |title=Defense News Top 100 |accessdate=2006-04-04 |year=2005 |publisher=Defense News Research }} </ref>, the world's largest radar maker (with over 850 ground-based radar installations), and the number-one builder of naval vessels. As of 2004, it had 125,000+ employees working at hundreds of sites in the U.S. and abroad, and an annual revenue of US$30.7 billion. Northrop Grumman ranks #58 on the 2005 Fortune 500 list of U.S. industrial companies.<ref name="GS"> {{cite web |url=http://www.globalsecurity.org/military/industry/north-grum.htm |title=Global Security: Northrop Grumman |accessdate=2006-04-04 |last=Pike |first=John }} </ref>
Contents |
Products
Image:Usaf.b2.spirit.750pix.jpg Much of the company's focus is on missiles and missile systems. The best known products of Northrop Grumman are the B-2 Spirit strategic bomber, the RQ-4 Global Hawk unmanned aerial vehicle and the F-14 Tomcat carrier-based strike fighter.
Naval products
Northrop Grumman's many products are made by separate business units. Newport News Shipbuilding manufactures all U.S. aircraft carriers, and is the only company capable of building Nimitz-class supercarriers. It also produces a large percentage of U.S. nuclear submarines. A separate sector, Northrop Grumman Ship Systems, produces assault ships and many other commercial and military craft, including icebreakers, tankers, and cargo ships. In a partnership with Science Applications International, Northrop Grumman provides naval engineering and architecture services as well as naval maintenance services
Aerospace products
Image:BQM-74E launch.jpg Separate sectors, such as Space Technology, product aircraft for the U.S. and other nations. The B-2 Spirit strategic bomber, the E-8c surveillance aircraft, the RQ-4 Global Hawk, and the T-38 Talon supersonic trainer are used by the U.S. Air Force. The Navy uses Northrop Grumman-built vehicles such as the BQM-74 Chukar, C-2 Greyhound, E-2C Hawkeye, and the EA-6B Prowler. Many aircraft, such as the F-5 Tiger, T-38 Talon, E-2C Hawkeye, and the F/A-18 Hornet, are sold to other nations. Northrop Grumman Electronic Systems produces and maintains AWACS aerial surveillance systems for the U.S. and Great Britain. A UK-based subsidiary, Park Air Systems, makes navigation, traffic control, and communications equipment for aircraft in the UK.
The Space Technology sector builds NASA satellites, propulsion systems, and mission payloads, as well as various Strategic Defense Initiative ("Star Wars") defensive laser systems. Rocket launch systems are produced by the Information Technology sector.
Other products
Northrop Grumman Electronic Systems creates C4I radar systems for air defense, and Airspace Management radar systems air traffic control. Other radar are used in F-16 Fighting Falcons and other military aircraft, or in battlefield surveillance systems like ARL. Another UK subsidiary manufactures remote control vehicles for handling explosives or hazardous materials. Many other smaller products are made by Northrop Grumman, such as night-vision goggles and secure communications equipment.
Services
In addition to providing the products created by Northrop Grumman, the company also provides many military and non-military services, usually to governments. It is the largest supplier of IT services to the U.S. federal government, for instance. And Vinnell, a Northrop Grumman subsidiary, provides training and communications services for the military.
Many smaller nations and individual states in the U.S. have contracted Northrop Grumman for various large-scale projects. In 2005, for instance, the company won a $2 billion contract with Virginia to overhaul the most of the state's IT operations.<ref>{{cite news |url=http://governmententerprise.com/showArticle.jhtml?articleId=173602825 |publisher=Information Week |title=Virginia Taps Northrop Grumman for $2 Billion IT Overhaul |first=Paul |last=McDougall |accessdate=2006-04-04 |date=2005-11-15 }}</ref> And later that year, Great Britain paid for a $1.2 billion contract with the company to provide maintenance of many aspects of the country's defensive radar.<ref>{{cite news |url=http://www.defenseindustrydaily.com/2005/08/britain-issues-12b-e3d-awacs-support-contract/index.php |publisher=Defense Industry Daily |title=Britain Issues $1.2B E-3D AWACS Support Contract |date=2005-08-16 |accessdate=2006-04-04 }}</ref>
Northop Grumman also performs various foreign functions in the War on Drugs. The company sends planes to spray herbicides on suspected cocaine fields in Colombia and opium poppy fields in Afghanistan.<ref name="maxjourdan">{{cite news
| first=Max | last=Jourdan | url=http://news.bbc.co.uk/1/hi/programmes/this_world/4079691.stm | title=Protecting people or profit? | publisher=BBC News | date=2004-12-14 | accessdate=2006-04-04
}}</ref><ref>{{cite news
| first=Jacob | last=Quintanilla | url=http://www.americas.org/item_15405 | title=The "Invisible" U.S. War in Colombia | publisher=Resource Center of the Americas | date=2004-06-29 | accessdate=2006-04-05
}}</ref>
History
In 1994, Northrop Aircraft merged with Grumman Aerospace to create the company Northrop Grumman. Both companies were previously established in the airplane manufacturing industry, and Grumman was famous for building the Apollo Lunar Module. The new company acquired Westinghouse Electronic Systems in 1996, a major manufacturer of radar systems. Logicon, a defense computer contractor, was added in 1997.
A merger between Northop Grumman and competitor Lockheed Martin was not approved by the U.S. government in 1997, slowing the consolidation of the defense industry. But in 1999, the company acquired Teledyne Ryan, which developed surveillance systems and unmanned aircraft. Then in 2001 it acquired Litton Industries, a shipbuilder and provider of defense electronics systems to the U.S. Navy. Later that year, Newport News Shipbuilding (one of only two producers of nuclear submarines) was added to the company. And in 2002, Northop Grumman acquired TRW, a space systems and laser systems manufacturer. There have been many other smaller acquisitions throughout the same period.<ref name="GS1"> {{cite web |url=http://www.globalsecurity.org/military/industry/mergers.htm |title=Global Security: Mergers |accessdate=2006-04-05 |last=Pike |first=John }} </ref>
Northrop Grumman and Boeing have also recently collaborated on a design concept for NASA's upcoming Crew Exploration Vehicle. Northrop Grumman announced formation of a new business unit (sector), effective January 1, 2006 called Technical Services.
Accolades
Northrop Grumman was named Forbes's Company of the Year in 2002. Forbes's announcement credited the company with "master[ing] the art of innovation."<ref>{{cite news |url=http://www.forbesinc.com/newsroom/releases/editorial/Forbes010603.doc |publisher=Forbes Magazine |title=Forbes Names Northrop Grumman Company of the Year |date=2002-12-19 |accessdate=2006-04-04 }}</ref> Northrop Grumman no longer appears on their list of America's 400 Best Big Companies, however.<ref>{{cite web |url=http://www.forbes.com/lists/2005/12/21/400-best-biggest-companies_06platinum_land.html |title=America's Best Big Companies |accessdate=2006-04-04 |year=2006 |publisher=Forbes Magazine }} </ref> Northrop Grumman is credited with sponsoring educational programs<ref>Northrop Grumman (March 20, 2006). Northrop Grumman Becomes Co-pilot for NASA's Great Moonbuggy Race. Press release.</ref> and donating thousands of dollars to various charities.<ref>Northrop Grumman (March 31, 2006). Northrop Grumman Makes $25,000 Donation to Boys and Girls Club of Annapolis and Anne Arundel County. Press release.</ref><ref>{{cite web
| year = 2005 | url = http://readingtokids.org/Friends/Businesses/GroupViewB.php?gpage=NorthropGrummanECHO | title = Northrop Grumman Employees Charity Organization | publisher = Reading to Kids | accessdate = 2006-04-04
}}</ref> Many members of the U.S. government have attended company events and spoken highly of the company and its contributions.<ref>Northrop Grumman (August 1, 2005). Photo Release -- Sen. John McCain Thanks Northrop Grumman Shipbuilders at Commissioning of Aegis Destroyer Halsey (DDG 97). Press release.</ref>
Controversy
Government influence
According to the company's 2005 filings, 90% of the company's income that year came from the United States government, "principally the Department of Defense".<ref name="FY">{{cite news
| url=http://biz.yahoo.com/e/060217/noc10-k.html | title=Northrop Grumman SEC Filing | publisher=Northrop Grumman | date=2006-02-17 | accessdate=2006-04-05
}}</ref> This, along with many millions spent on lobbying and campaign contributions, has led to perennial charges of improper lobbying and influence peddling. In 2002, the World Policy Institute noted "After a decade of consolidation, the merger [between Northrop Grumman and TRW] will leave the U.S. with three major defense contractors... The 1990s bout of government-backed 'merger mania' in the military industry accomplished one thing: it resulted in a... much more politically powerful corporate military sector."<ref>{{cite news
| first=Michelle | last=Ciarrocca | url=http://www.fpif.org/commentary/2002/0207merger.html | title=Northrop Grumman and TRW Merger: Sealing the Deal | publisher=Foreign Policy in Focus | date=2002-07-29 | accessdate=2006-04-04
}}</ref> In a separate article, the institute revealed: "Together Northrop Grumman and TRW have spent over $20 million on lobbying members of Congress and given about $4 million in campaign contributions"<ref>{{cite news
| first=Frida | last=Berrigan | url=http://www.worldpolicy.org/projects/arms/updates/022602.html | title=Military Merger Madness: Northrop Grumman on the Prowl | publisher=Arms Trade Resource Center | date=2002-02-26 | accessdate=2006-04-04
}}</ref>
Many members of Congress and executive officials have pushed heavilly for purchasing items like Stealth Bombers and a national SDI system, purchases that would signify a windfall for Northrop Grumman if approved. Senators Trent Lott, John Warner, and Ted Stevens each received over $10,000 from the company.<ref name="rightweb">{{cite web
| last = Flynn | first = Michael | year = 2004 | url = http://rightweb.irc-online.org/profile/2831 | title = Northrop Grumman | publisher = Right Web Profiles | accessdate = 2006-04-04
}}</ref> Several former officials, consultants, or primary shareholders of Northrop Grumman have held high posts in the Bush administration, including Paul Wolfowitz, I. Lewis Libby, Richard B. Myers, Dov Zakheim, and Sean O'Keefe.<ref name="rightweb"/> One of the company's vice presidents, William O. Studeman, was the deputy director of the CIA in the 1990s.<ref name="cpi">{{cite news
| first=André | last=Verlöy | url=http://www.publicintegrity.org/wow/bio.aspx?act=pro&ddlC=64 | title=Windfalls of War: Vinnell Corporation (Northrop Grumman) | publisher=Center for Public Integrity | accessdate=2006-04-04
}}</ref> One of the company's largest subsidiaries, Vinnell Corporation, was previously owned by James A. Baker III and Frank Carlucci, former Secretaries of State under successive Republican administrations.<ref name="cw">{{cite web
| url = http://www.corpwatch.org/article.php?list=type&type=11 | title = Northrop Grumman | publisher = CorpWatch | accessdate = 2006-04-04
}}</ref>. Many commentators point to Northrop Grumman as a primary example of a player in the military-industrial complex.<ref>{{cite news
| first=William D. | last=Hartung | url=http://www.commondreams.org/views04/0206-09.htm | title=Making Money on Terrorism | publisher=The Nation | date=2004-02-23 | accessdate=2006-04-04
}}</ref><ref>{{cite news
| first=Frida | last=Berrigan | url=http://www.worldpolicy.org/projects/arms/updates/release022404.html | title=Is What's Good For Boeing and Halliburton Good For America? | publisher=World Policy Institute | date=2004-02-24 | accessdate=2006-04-05
}}</ref> By contracting military services to private contractors such as Northrop Grumman, the U.S. Government is seen as avoiding responsibility for its actions.<ref name="maxjourdan"/>
Scandals
In addition, Northrop Grumman has had to deal with several scandals througout its history. Before the companies merged, in 1972 Northrop was shown to have bribed several Saudi Arabian officials to purchase F-5s.<ref>{{cite news
| first=A. Timothy | last=Martin | url=http://www.transparency.ca/Readings/TI-G02.pdf | title=The Development of International Bribery Law | publisher=Natural Resources & Environment Vol. 14, Issue 2, a magazine of the American Bar Association | date= 1999 | format=PDF | accessdate=2006-04-04
}}</ref> More recently, the company was sued in 1999 for knowingly giving the Navy defective aircraft. This suit seeks $210 million in damages and is ongoing.<ref name="rightweb"/> Then in 2003, the company was sued for allegedly overcharging the U.S. government for space projects in the 1990s. Northrop Grumman paid $111.2 million to settle that suit out of court.<ref name="cw"/><ref>{{cite news
| first=Renae | last=Merle | url=http://pqasb.pqarchiver.com/washingtonpost/access/382495171.html?dids=382495171:382495171&FMT=ABS | title=Northrop Settles Billing Case: Shipbuilding Unit Allegedly Overbilled U.S. by $72 Million | publisher=Washington Post | date=2003-08-09 | accessdate=2006-04-04
}}</ref> Northrop Grumman also landed a $48 million contract to train the New Iraqi Army, a job that many have complained has been poorly managed.<ref name="cpi"/><ref>{{cite news
| title=$48 Million To Train Iraqi Army | publisher=Defense News | date=2003-07-07
}}</ref>
Corporate governance
Kent Kresa was the CEO of the company until he was required to retire in 2003 due to age restrictions. At this point, Ronald Sugar, formerly the chief operating officer, took over as CEO.<ref>{{cite news
| first=Seth | last=Lubove | url=http://www.forbes.com/free_forbes/2003/0106/102.html | title=We See You, Saddam | publisher=Forbes Magazine | date=2003-01-06 | accessdate=2006-04-04
}}</ref> He also serves as the company chairman.
Besides Sugar, Current members of the board of directors of Northrop Grumman are: John Chain, Lewis Coleman, Vic Fazio, Stephen Frank, Phillip Frost, Charles Larson, Richard B. Myers, Philip Odeen, Aulana Peters, Kevin Sharer, John Brooks Slaughter.
Business units (sectors)
The company is split into several business units, each of which operates fairly independently. These business units have generally been created through acquisitions.
- Northrop Grumman Electronic Systems was created by Northrop Grumman's acquisition of Westinghouse Electronic Systems Group in 1996. The Electronic Systems sector is a leading designer, developer, and manufacturer of a wide variety of advanced defense electronics and systems. The division has 120 locations worldwide, including 72 international offices, and approximately 24,000 employees. It accounted for 20% of company sales in 2004.<ref>Northrop Grumman Corporation (2005) 2004 Annual Report</ref>
- Information Technology is the sector charged with providing information systems and services to clients. It also handles training and simulation contracts.
- Mission Systems deals with missile systems.
- Integrated Systems support the aerospace and defense industries, providing the U.S. military with intelligence, surveillance, reconnaissance, and integrated strike warfare.
- Northrop Grumman Newport News is the largest privately owned shipyard in the United States and the only one that can build Nimitz-class supercarriers. It is located in Newport News, Virginia, and often participates in projects with the Norfolk Naval Shipyard in Portsmouth, Virginia.
- Northrop Grumman Ship Systems is responsible for building small and medium shipping products. It consists of the former Ingalls Shipbuilding and Avondale Shipyard companies.
- Space Technology deals primarily with satellites, and SDI systems.
- Technical Services is a new business unit formed January 1, 2006. Northrop Grumman describes the sector as working in "the logistics support, sustainment, and technical services marketplace."
References
<references/>
External links
- Northrop Grumman web site
- A summary of the company from Oligopoly Watch
- A thorough list of Northrop Grumman products
- Interview with NG CEO
- Template:Cite web
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