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


  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.