Kent Kresa News

Shortly following terrorist attakcs in both New York and Washington, D.C., USS Cole, the destroyer, which was itself the victim of a terrorist attack, was relaunched back into the water on September 14 at Northrop Grumman Corporation. The ship was launched a day earlier than previously scheduled at the company's Ingalls Operations. The ship had been moved onto land in January into a construction bay near where Cole was originally built by Northrop Grumman. The USS Cole crippled in a terrorist attack in the Port of Aden, Yemen, on Oct. 12, 2000, returned to its construction shipyard on the deck of the Norwegian heavy lift ship Blue Marlin last December. Capt. Philip N.

Northrop Grumman Corporation and Newport News Shipbuilding Inc. announced today that they have signed a definitive agreement under which Northrop Grumman will acquire Newport News Shipbuilding. The boards of directors of both companies approved the terms of the transaction in which Northrop Grumman will acquire all the outstanding shares of Newport News. $67.50, subject to certain limitations and proration procedures. Northrop Grumman expects to promptly amend its existing offer documents in order to reflect the merger agreement. Shipbuilding shareholders will have the same right to elect to receive cash or shares of Northrop Grumman stock as described above. Kent Kresa, Northrop Grumman chairman and chief executive officer.

Northrop Grumman Corporation announced that its board of directors has elected Ronald D. Grumman's next chairman of the board. Effective Oct. officer and president. chairman since 1990, will retire on that date. 2003 as president and chief executive officer. boards," said Sugar. Grumman in September 2001 and its chief executive officer in April 2003. has served as a member of the Northrop Grumman board of directors since 2001. Industries, a company acquired by Northrop Grumman in April 2001. Information Systems and a member of the chief executive office of TRW Inc. global automotive electronics business. scientific, and commercial space and electronics programs. Aircraft Co., Argosystems Inc. and The Aerospace Corporation. (1969) and doctoral degrees (1971) in the same field.

Northrop Grumman Corporation announced today the completion of its tender offer for all of the outstanding shares of Newport News Shipbuilding Inc., creating the world's largest naval shipbuilder. E.S.T. on November 29, 2001. exchange. The exchange agent for the offer has advised Northrop Grumman that a total of approximately 26,469,213 shares were tendered in the offer, including approximately 14,503,155 delivered through notice of guaranteed delivery. common stock. "Northrop Grumman is now a world-class, fully capable shipbuilding company with expertise in every class of nuclear and non-nuclear vessel," said Kent Kresa, Northrop Grumman's chairman and chief executive officer.

Northrop Grumman Corporation reported 2001 fourth quarter economic earnings of $158 million, compared with $106 million for the same period of 2000. On a per share basis, the company reported 2001 fourth quarter economic earnings of $1.55 on average diluted shares outstanding of 98.0 million, compared with economic earnings of $1.46 on average diluted shares outstanding of 72.5 million for the fourth quarter of 2000. Under Generally Accepted Accounting Principles (GAAP), the company reported fourth quarter 2001 net income of $131 million, or $1.28 per share, compared with net income from continuing operations of $144 million, or $1.99 per share, for the same period of 2000.

Kent Kresa, Northrop Grumman Corporation's chairman of the board and CEO, is the recipient of the 2002 Navy League of the United States' Fleet Admiral Chester W. Nimitz Award. This award was presented at the organization's Sea-Air-Space Exposition Banquet March 27 at the Marriott Wardman Park Hotel in Washington, D.C. Kresa, well known in the defense industry, received the Nimitz Award for his exceptional contribution to maintaining the United States' maritime strength. Kresa's career at Northrop Grumman began in 1975 as vice president and manager of the company's Research and Technology Center, developing new proprietary processes and products for the company.

Northrop Grumman Corporation reported first quarter 2002 net income of $149 million, or $1.27 per share, compared with net income of $132 million, or $1.81 per share, for the same period of 2001, adjusted for SFAS No. 142 - Goodwill and Other Intangible Assets. The comparable per share decline reflects a substantial decrease in pension income and increases in interest expense and in the number of shares outstanding. On an economic earnings basis, the company reported increased earnings of $170 million, or $1.45 per share, compared with $101 million, or $1.39 per share, for the same period of 2001. 2002 earnings per share are based on average diluted shares outstanding of 112.8 million versus 72.8 million for the first quarter of 2001.

Northrop Grumman Corporation’s Gold Team was chosen by the U.S. Navy to complete the system design for the Navy's advanced, 21st century surface combatant, DD(X). The project replaces the $25 billion DD-21 program of land-attack destroyers that was scrapped last fall. Northrop Grumman's Ship Systems sector will lead the system design, engineering prototype development and testing of the DD(X) System under a $265 million contract awarded today by the Navy. The team includes Raytheon Company (NYSE:RTN) as mission systems integrator and more than 30 of the nation's top engineering and maritime industrial companies. The initial design contract has a total value of approximately $2.9 billion over four years. "We are very pleased and proud that our DD(X) Gold Team was selected by the Navy.

Northrop Grumman Corporation Chairman and CEO Kent Kresa stated emphatically that, "TRW shareholders have sent a strong message to TRW's board of directors today in favor of allowing Northrop Grumman to begin due diligence in connection with its proposed acquisition of TRW. We are prepared to immediately enter discussions with TRW to resolve the outstanding differences concerning an agreement that allows Northrop Grumman to begin due diligence consideration of non-public information as soon as possible. "As we have previously stated, we are willing to pay full and fair value for TRW and encourage TRW to provide information supporting any additional hidden value.

In a move which effectively creates a defense and marine naval construction giant, Northrop Grumman Corp. and Litton Industries jointly announced late last month that they have signed a definitive agreement under which Northrop Grumman will acquire for cash all of the outstanding shares of Litton for $80 per common share and $35 per Series B Preferred share. The transaction is valued at approximately $5.1 billion, which includes the assumption of Litton's $1.3 billion in net debt. Litton is a leading supplier of advanced electronics and information systems to the U.S. government and international customers and is the premier designer and builder of non-nuclear surface combatant ships for U.S. and foreign navies.

Northrop Grumman Corporation and TRW Inc. jointly announced that they have entered into a definitive merger agreement. The combination will position Northrop Grumman as the nation's second largest defense contractor with projected annual revenues of more than $26 billion and approximately 123,000 employees. Following the separation of TRW's automotive business and completion of the sale of TRW's Aeronautical Systems business, Northrop Grumman will be a Fortune 100 company. Under the terms of the agreement, unanimously approved by the boards of directors of both companies, Northrop Grumman will acquire TRW for $60 per share in common stock in a transaction valued at approximately $7.8 billion, plus the assumption of TRW's net debt at the time of closing.

Northrop Grumman Corporation's Newport News sector is teamed with Electric Boat to build the first four ships of the Virginia-class. Texas is the second ship of the class and the first one that will undergo final assembly and delivery at Newport News in 2005. The keel that will be laid for Texas is part of the stern section of the ship. The keynote speaker for the ceremony will be U.S. Sen. John Warner of Virginia. Corporation Chairman and Chief Executive Officer Kent Kresa, Northrop Grumman Newport News President Tom Schievelbein, Virginia Gov. Mark R. Warner, Secretary of the Navy Gordon England, U.S. Sen. Boat President Mike Toner. Ceremony attendants will include both Northrop Grumman Newport News and Electric Boat employees who are building Texas, U.S.

Northrop Grumman Corporation's Newport News sector hosted a keel laying ceremony for the second Virginia-class submarine, Texas (SSN 775). Laura Bush is the Ship's Sponsor and served as the keel authenticator for the ceremony. Mrs. Bush authenticated the keel by chalking her initials onto a metal plate. Her initials were then welded and the plate will be permanently affixed to the submarine. "A mighty American submarine deserves a mighty American name," she said. Virginia-class. Texas is the second ship of the Virginia-class. "Skilled professionals will forge the newest alloys and technology into one of the most sophisticated ships in the world," said Mrs. Bush. The keynote speaker for the ceremony was U.S. Sen. of Virginia. Newport News President Tom Schievelbein, Virginia Gov. Mark R.

Northrop Grumman Corporation has named Ronald D. Sugar, president and chief operating officer chairman and chief executive officer. Dr. Sugar was elected to Northrop Grumman's board of directors last April. Kent Kresa, chairman and CEO, stated, "With our recent acquisition of Litton Industries, Northrop Grumman is now a $15 billion top-tier global enterprise with 80,000 employees. Ron's appointment provides our company with additional management depth, experience and expertise at an important time in our company's history. For the past 11 years, Kresa has held the position of chairman, president and chief executive officer, leading Northrop Grumman in its transition from primarily an aircraft company to a leading defense electronics…

Northrop Grumman Corporation, leader of the DD(X) Gold Team, and Raytheon company said today that they were delighted by the decision of the General Accounting Office (GAO), which validates that an appropriate evaluation process was used when the U.S. Navy selected the Gold Team to complete the system design for the Navy's 21st century surface combatant, DD(X). "Now that this issue is behind us, we can move ahead on this transformational ship program, which is so critical to the Navy, the DoD and the nation," said Kent Kresa, Northrop Grumman chairman and chief executive officer. "We were confident in the Navy's selection process, and are grateful that the GAO so expeditiously acted in validating that the Gold Team's proposal provided the best value for the customer.

shares outstanding of 98.0 million in the fourth quarter of 2001. with SFAS No. Schedule 4). of common stock in conjunction with its Dec. 11, 2002, acquisition of TRW Inc. do not include TRW's post-acquisition results because they were not material. Financial Metrics). the full quarter results for Newport News, which was acquired on Nov. 2001. same period last year. 8 percent to $411 million from an adjusted $381 million in the prior year. compared with $88 million in the fourth quarter of 2001. Northrop Grumman chairman and chief executive officer. include double digit increases in both net income and economic earnings. defense budgets and homeland security initiatives. 2003 sales of $25 billion to $26 billion," Kresa concluded.

promptly close its acquisition of TRW, Inc. after shareholders of both companies approve the transaction at separate meetings December 11, 2002. satellite payloads. businesses and those of TRW as planned. The European Union antitrust authority approved the transaction Oct. 2002. executive officer. principle. agreement. exchange for Northrop Grumman common stock. day prior to the closing of the merger. than 0.4348 or more than 0.5357 of a Northrop Grumman share. closing date of Dec. 11, the five-day trading period commenced Dec.

Northrop Grumman Corporation will present at the Lehman Brothers 20th Annual Industrial Select Conference in Miami, Fla., February 3. The presentation by Kent Kresa, Northrop Grumman's chairman and chief executive officer, will be webcast at www.northropgrumman.com beginning at 12:30 p.m. EST.

The Navy’s newest and most sophisticated nuclear-powered aircraft carrier, USS Ronald Reagan (CVN 76), was commissioned July 12, 2003 at the Norfolk Naval Station in Norfolk, Va. Named after America's 40th president, Reagan is the ninth Nimitz-class aircraft carrier built by Northrop Grumman Newport News and the first carrier named for a living president. The keynote speaker for the commissioning ceremony was Vice President of the United States, Dick Cheney. Mrs. Ronald Reagan also attended the ceremony and served as the ship’s sponsor. Other ceremony participants included Virginia Governor Mark Warner, Virginia Senator John Warner, Acting Secretary of the Navy Hansford Johnson, Chief of Naval Operations Admiral Vern Clark, and Northrop Grumman Newport News President Tom Schievelbein.

Northrop Grumman Corporation announced today that its board of directors has elected Ronald D. Sugar, the company's president and chief operating officer, as Northrop Grumman's next chief executive officer. nation's second largest defense contractor effective April 1, 2003. president. age of 65 for senior executives. until Oct. 1, 2003. understanding of our business, our strategy and our potential," said Kresa. Industries, Ron and I have worked closely together. commitment to excellence. look forward to leading Northrop Grumman. lifetime. sheet. vision and leadership he provided over the past decade. past 13 years has been one of the most rewarding experiences of my life. defense companies in the world. we have a wonderful future ahead of us.

Northrop Grumman has made the prospects of big defense consolidation a bit more interesting, offering to acquire Newport News Shipbuilding in what amounts to a hostile takeover attempt. Citing General Dynamics' proposed takeover of Newport News - a $2.6 billion deal which was announced last week - as "creating an unhealthy monopoly," Northrop Grumman has initiated its own takeover attempt. Specifically, Northrop Grumman's Board of Directors has authorized management to match General Dynamics' offer of $67.50 per share for all the outstanding shares of common stock of Newport News, payable 75 percent in Northrop Grumman stock, the remainder in cash. In a letter to Newport News Chairman and Chief Executive Officer William P.

Following is the full text of the letter submitted to William P. Fricks, Chairman and CEO of Newport News Shipbuilding, from Kent Kresa Chairman, President and CEO, Northrop Grumman Corporation, regarding the proposed takeover of Newport News Shipbuilding. Mr. William P. Newport News Shipbuilding Inc. We were disappointed by your April 25th announcement that Newport News had agreed to be acquired by General Dynamics for cash without exploring alternatives with Northrop Grumman. Moreover, we believe your proposed transaction with General Dynamics raises serious antitrust issues. As the Department of Defense previously noted, over 75%…

With General Dynamics Corp. and Northrop Grumman Corp. battling for Newport News Shipbuilding Inc. both the Pentagon and Virginia's powerful delegation in Congress are ready to step into the fray over who buys the nuclear-capable contractor. Defense Department officials are likely to weigh the cost benefits of each deal, questioning which combination would lower the price of nuclear-powered vessels for the U.S. Navy. Virginia's elected representatives will eye the acquisition's effect on jobs, and the warfare technology research funds that the shipbuilder, based in Newport News, Virginia, draws into the state. "This thing has become a political game now," said a veteran defense industry antitrust lawyer, who asked not to be named.