Northrop Seeks to Form Joint Ventures This Year
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Northrop Grumman Corp., the fifth-biggest U.S. defense contractor, is likely to make acquisitions or form joint ventures this year, Chairman and Chief Executive Kent Kresa said Tuesday.
The Los Angeles-based company is interested in bolstering its defense electronics and information systems business, he said.
Northrop generated about $1.2 billion in cash last year and reduced its debt by $700 million to $2.1 billion. The company is trying to remain competitive with bigger rivals Lockheed Martin Corp., Boeing Co. and Raytheon Co.
Northrop has expressed concern that it will be hurt if the U.S. decides to stick with its “winner-take-all” competition between Lockheed and Boeing for the Joint Strike Fighter program, which could be the last fighter jet developed for decades. Northrop, a subcontractor, has recommended that the contract be split.
It has said it needs at least 20% of the work to remain viable as a warplane contractor.
Northrop shares rose $2.81 to close at $55.25 on the New York Stock Exchange.
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