Northrop shakes up shipbuilding, missiles divisions

Northrop Grumman Corp. is restructuring its shipbuilding and missiles businesses in a move that officials said will enhance customer support, make better use of capabilities and resources and accelerate operating improvements.

Beginning Jan. 28, Northrop Grumman's two shipbuilding units, Newport News and Ship Systems, will be combined into a single sector called Northrop Grumman Shipbuilding.

Effective July 1, the company's missiles business will report to the Space Technology sector rather than to the Mission Systems sector. Officials said this new reporting structure will allow Mission Systems to focus on the rapidly growing command and control business. The missiles business will be an integrated element of the company's aerospace business growth strategy.

The realignment will enhance Northrop Grumman's military shipbuilding enterprise and enable the company to more effectively use its shipbuilding assets, shipbuilders and planned capital investments, said Ronald Sugar, Northrop Grumman's chairman and chief executive officer.

C. Michael Petters, corporate vice president and president of the company's Newport News unit, has been elected corporate vice president and president of Northrop Grumman Shipbuilding. He will assume day-to-day responsibility for the sector's Gulf Coast operations and will operate from Pascagoula, Miss., during the realignment and transition phase, which is expected to continue throughout the year.

Northrop Grumman Shipbuilding accounts for about $5.5 billion in annual revenue and has nearly 40,000 employees.

Philip Teel, corporate vice president and president of Ship Systems, has been elected corporate vice president and president of the company's Mission Systems sector effective April 1. He will succeed Jerry Agee, who is retiring in August.

Mission Systems accounts for about $5 billion in annual revenue and has 17,000 employees.

John Clay, a Mission Systems sector vice president and general manager, will lead the missiles business, which includes the ICBM Prime Integration program, the Kinetic Energy Interceptor program and the Missile Engineering Center. The $900 million business employs about 750 people and has operations in Utah, Alabama, Virginia and California.

Clay will report to Alexis Livanos, corporate vice president and president of Space Technology, which accounts for about $4 billion in annual revenue and has 9,000 employees.

Northrop Grumman of Los Angeles ranks No. 3 on Washington Technology's 2007 Top 100 list of the largest federal government prime 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.

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