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NORTHROP GRUMMAN CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2001

Filing Date
Filed May 10, 2001
Period End
March 31, 2001
Security
NOC
In the record · 2016–202610-K1110-Q328-K121

NOC filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 121 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’17Oct ’17
  2. Material agreement8-K · Oct ’19Oct ’19
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-Q filed May 10, 2001. Cited figures are marked; the original filing is the authoritative source.

Northrop Grumman Corporation (NOC) reported its first quarter 2001 financial results, reflecting continued growth in sales and significant strategic acquisitions.

Sales increased by 10% to nearly $2 billiona year-over-year, driven by strong performance in the Electronic Sensors and Systems, and Logicon segments, which more than offset a decline in Integrated Systems. The company's net income from continuing operations stood at $103 million ($1.42 per diluted share) for the quarter, a decrease from the prior year's $156 million ($2.23 per diluted share), largely due to lower operating margins in the Integrated Systems segment and increased amortization. A pivotal development during the quarter and its immediate aftermath was the significant progress and completion of the Litton Industries acquisition.

This major transaction, valued at approximately $5.3 billionb, was substantially completed in early April 2001. The company also announced definitive agreements to acquire Aerojet-General's Electronics and Information Systems Group and made an offer for Newport News Shipbuilding, signaling a clear strategy of aggressive expansion through strategic acquisitions. These developments will significantly reshape the company's operational landscape and financial structure going forward.

02—Key points

Key Highlights

  1. Sales increased 10% to $1.986 billion in Q1 2001 compared to $1.802 billion in Q1 2000, driven by Electronic Sensors & Systems and Logicon.
  2. Net income from continuing operations decreased to $103 million ($1.42/share) from $156 million ($2.23/share) in the prior year's quarter, impacted by lower margins and increased amortization.
  3. The acquisition of Litton Industries, valued at approximately $5.3 billion, was largely completed in early April 2001, with the company issuing 13 million common shares and 3.5 million preferred shares.
  4. The company secured new credit facilities totaling $5 billion to finance the Litton acquisition and related expenses.
  5. Northrop Grumman announced an agreement to acquire Aerojet-General's Electronics and Information Systems Group for $315 million, expected to close in Q3 2001.
  6. The company made an offer to acquire Newport News Shipbuilding, challenging General Dynamics' existing bid, and is preparing an exchange offer.
  7. Pension income significantly contributed to operating margin, with $69 million recognized in Q1 2001 versus $140 million in Q1 2000.

03—Questions

Frequently Asked Questions

  1. What were the key drivers of sales growth in the first quarter of 2001?

    Sales increased by 10% to $1.986 billion. This growth was primarily driven by the Electronic Sensors and Systems sector, which saw a 17% increase in sales due to higher revenues on several programs, and the Logicon segment, which experienced a 56% surge in sales due to the inclusion of businesses acquired in 2000.

  2. How did the company's profitability change compared to the previous year?

    Net income from continuing operations decreased to $103 million in Q1 2001 from $156 million in Q1 2000. This was mainly due to a 20% decrease in operating margin for the Integrated Systems sector, impacted by lower B-2 sales, and increased amortization of goodwill and other purchased intangibles within the Logicon segment.

  3. What are the significant acquisitions and strategic initiatives announced or completed around this period?

    The company completed a significant portion of the acquisition of Litton Industries in early April 2001 for approximately $5.3 billion. Additionally, Northrop Grumman announced an agreement to acquire Aerojet-General's Electronics and Information Systems Group for $315 million and made a competitive offer for Newport News Shipbuilding.

  4. How is the company financing its recent and planned acquisitions?

    The company entered into new credit facilities totaling $5 billion, comprising a $2.5 billion 364-day revolving credit facility and a $2.5 billion five-year revolving credit facility. These facilities, along with the proceeds from debt issuances in February 2001, were used to finance the Litton acquisition and will support ongoing operations and future endeavors.

04—Continue

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