Northrop Grumman scuttles its shipbuilding unit

Transfer of stock to shareholders ends shipbuilding for Navy, Coast Guard

Northrop Grumman Corp. completed the spin-off today of its Huntington Ingalls Industries Inc. subsidiary to its shareholders.

The company designs, builds, and maintains nuclear and non-nuclear ships for the Navy and Coast Guard. It is based in Newport News, Va.

As a result of the spin-off, Northrop Grumman will report shipbuilding financial results as discontinued operations for the first quarter of 2011 and all prior periods, the defense contractor said in a statement.

"Today's completion of the separation of Huntington Ingalls from Northrop Grumman is an important milestone benefiting both companies," said Wes Bush, Northrop Grumman's CEO and president, in the announcement.

"Northrop Grumman will now be focused on its core markets of aerospace systems, electronic systems, information systems and technical services," Bush added.

Current Northrop Grumman stockholders received one share of Huntington Ingalls common stock for every six shares of Northrop Grumman common stock they held. Stockholders will receive cash in lieu of fractional shares of Huntington Ingalls.

Northrop Grumman, of Los Angeles, ranks No. 2 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
SEARCH
 Top 100 Slideshow
contracts DB

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More

Webcasts