Northrop’s business segments
Northrop Grumman (NOC) mainly operates in four business segments. Northrop’s business segments include:
- Aerospace Systems
- Electronic Systems
- Information Systems
- Technical Services
Among NOC’s business segments, the Aerospace segment contributes the highest revenue—as much as 41%. The segment also enjoys a 25.8% market share in the Aerospace market.
The segment focuses on the research, development, and production of unmanned aircraft systems (or UAS), space systems—like the James Webb Space Telescope (or JWST), and military aircraft systems—like the C4SIR and B-2 Spirit stealth bombers. The segment also has other advanced programs and technologies that are mainly deployed by US government agencies.
NOC’s Electronic Systems segment is the second segment in terms of profitability. It contributes to more than 27% of NOC’s revenues. It enjoys an 8% market share in the electronic systems market.
The segment mainly focuses on developing various navigation and maritime systems, land and self-protection systems—like missile tracking systems, and intelligence, surveillance, reconnaissance, and targeting systems. This helps strengthen a customer’s defense system. The segment competes with L-3 Communications Holdings (LLL).
The Information Systems segment provides solutions to the US Department of Defense (or DoD) and other intelligence agencies and customers. The segment provides cyber solutions that target adversaries of US, federal, and defense technologies—like net-enabled Battle Management C4 systems and IT solutions, Defense Systems—like net-enabled C2, networks, gateways, and decision support systems.
These technologies are used in programs like the Joint National Integration Center Research and Development Contract (or JRDC) and the Battlefield Airborne Communications Node (or BACN). This segment contributes to ~23% of NOC’s revenues. It enjoys a market share of ~9%. The segment competes with Harris Corporation (HRS).
The Technical Services segment deals with a variety of technical services—like training and simulation. It provides training solutions, complete life cycle support, weapon system sustainment, and other integrated logistics and modernization solutions. The segment contributes to ~11% of NOC’s revenues.
In the next part of this series, we’ll discuss how of these segments performed in 3Q14.