Northrop Grumman
Northrop Grumman's Shipbuilding Division, (NGSB), is made up of three major shipyards - the former Ingalls Shipbuilding, Avondale Industries and Newport News Shipbuilding.
Ingalls Shipbuilding, in Pascagoula, Mississippi, was started by Ingalls Iron Works, of Decatur, Alabama, in 1938 and acquired by Litton Industries in 1961. Avondale Industries, in New Orleans, Louisiana, was started in 1938, acquired by Ogden Corporation in the 1960s, spun off to Connell Partnership in 1985, spun off again in 1987, and finally acquired by Litton Industries in August, 1999. Litton began the process of merging Avondale with Ingalls to form Litton Ship Systems but was acquired by Northrop Grumman in April 2001 and Litton Ship Systems was renamed Northrop Grumman Ship Systems. Newport News Shipbuilding, in Newport News, Virginia, was started in 1891, acquired by Tenneco in 1968, spun off in 1996, and acquired by Northrop Grumman in November 2001. Northrop Grumman Ship Systems was consolidated with Northrop Grumman Newport News to form Northrop Grumman Shipbuilding in January 2008.
The table below summarizes the financial performance of Northrop Grumman and its consolidated shipbuilding operations since 2001. The data for 2001 are misleading, since they only include the results for the two Ship Systems yards from April and those for Newport News from November. There are two columns of data for 2008: column A shows the figures as reported, while column B shows the figures as I think they would have been without the company's $3 billion write-off of "impaired goodwill".
Historical data for the three individual shipbuilders and the various pre-Northrop Grumman combinations, going back to 1985, follow this table.
| NORTHROP GRUMMAN | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 A | 2008 B | 2009 |
| mm $ | mm $ | mm $ | mm $ | mm $ | mm $ | mm $ | mm $ | mm $ | mm $ | |
| Net Sales | 13,558 | 17,206 | 26,396 | 29,853 | 25,186 | 30,148 | 32,018 | 33,887 | 33,887 | 33,755 |
| Operating Margin | 1,004 | 1,391 | 1,468 | 2,006 | 2,178 | 2,454 | 3,006 | (111) | 2,949 | 2,483 |
| Operating Margin (%) | 7.4% | 8.1% | 5.6% | 6.7% | 8.6% | 8.1% | 9.4% | (0.3%) | 8.7% | 7.4% |
| Net Income | 427 | 64 | 866 | 1,084 | 1,400 | 1,567 | 1,803 | (1,262) | 1,798 | 1,686 |
| Net Income (%) | 3.1% | 0.4% | 3.3% | 3.6% | 5.6% | 5.2% | 5.6% | (3.7%) | 5.3% | 5.0% |
| Total Assets | 20,886 | 42,266 | 33,022 | 33,361 | 34,211 | 32,009 | 33,373 | 30,197 | 33,257 | 30,252 |
| Stockholders' Equity | 7,391 | 14,322 | 15,785 | 16,700 | 16,824 | 16,615 | 17,687 | 11,920 | 14,980 | 12,687 |
| Property, Plant and Equipment | 2,767 | 3,605 | 4,047 | 4,210 | 4,404 | 4,531 | 4,715 | 4,810 | 4,810 | 4,868 |
| Depreciation | 266 | 496 | 682 | 734 | 773 | 705 | 730 | 761 | 761 | 736 |
| Capital Expenditure | 393 | 521 | 637 | 672 | 824 | 737 | 685 | 681 | 681 | 654 |
| Employees | 96,800 | 117,300 | 123,400 | 125,400 | 123,600 | 122,200 | 122,600 | 123,600 | 123,600 | 120,700 |
| Net Sales/Employee | 140,000 | 146,000 | 214,000 | 238,000 | 204,000 | 246,700 | 246,700 | 274,200 | 274,200 | 279,660 |
| Shipbuilding Unit | ||||||||||
| Net Sales | 1,880 | 4,712 | 5,451 | 6,252 | 5,786 | 5,321 | 5,788 | 6,145 | 6,145 | 6,213 |
| Operating Margin | 19 | 306 | 295 | 389 | 241 | 393 | 538 | (2,307) | 183 | 299 |
| Operating Margin (%) | 1.0% | 6.5% | 5.4% | 6.2% | 4.2% | 7.4% | 9.3% | (37.5%) | 3.0% | 4.8% |
| Total Assets | 6,040 | 6,532 | 6,482 | 6,521 | 6,756 | 6,946 | 6,874 | 4,427 | 6,917 | 4,585 |
| Depreciation | 82 | 147 | 142 | 148 | 155 | 153 | 170 | 193 | 193 | 186 |
| Capital Expenditure | 44 | 76 | 136 | 220 | 266 | 287 | 247 | 218 | 218 | 181 |
| Employees | 32,500 | 34,000 | 38,000 | 39,200 | ||||||
| Net Sales/Employee | n/a | 138,600 | 143,400 | 159,500 | ||||||
| Shipbuilding Proportions | ||||||||||
| Net Sales | 13.9% | 27.4% | 20.6% | 20.9% | 23.0% | 17.6% | 18.1% | 18.1% | 18.1% | 18.4% |
| Operating Margin | 1.9% | 22.0% | 20.1% | 19.4% | 11.1% | 16.0% | 17.9% | n/a | 6.2% | 12.0% |
| Total Assets | 28.9% | 15.5% | 19.6% | 19.5% | 19.7% | 21.7% | 20.6% | 14.7% | 20.8% | 15.2% |
| Depreciation | 30.8% | 29.6% | 20.8% | 20.2% | 20.1% | 21.7% | 23.3% | 25.4% | 25.4% | 25.3% |
| Capital Expenditure | 11.2% | 14.6% | 21.4% | 32.7% | 32.3% | 38.9% | 36.1% | 32.0% | 32.0% | 27.7% |
| Employees | 33.6% | 27.7% | 30.8% | 31.3% | ||||||
| Net Sales/Employee | n/a | 94.9% | 67.0% | 67.0% |
Ingalls Shipbuilding (1985-1999)
|
Data Extracted from the Company's 10-K ($mm) |
Other Interesting Data |
|||||||||||
|
Year |
Revenue |
Operating Profit |
Total Assets |
Property, Plant & Equipment |
Annual Dep'n |
Cum. Dep'n |
Cap Ex |
Number of Employees |
Revenue per Employee |
Profit as a % of Revenue |
Asset Turnover |
Cap Ex per Employee |
|
1985 |
975 |
94 |
146 |
N/A |
15 |
N/A |
17 |
11,550 |
84 |
9.6% |
6.68 |
1,470 |
|
1986 |
1,193 |
118 |
193 |
N/A |
16 |
N/A |
17 |
12,700 |
94 |
9.9% |
6.18 |
1,340 |
|
1987 |
1,130 |
121 |
245 |
N/A |
17 |
N/A |
12 |
11,850 |
95 |
10.7% |
4.61 |
1,010 |
|
1988 |
920 |
114 |
284 |
N/A |
17 |
N/A |
39 |
11,650 |
79 |
12.4% |
3.20 |
3,350 |
|
1989 |
1,049 |
127 |
281 |
N/A |
17 |
N/A |
12 |
10,600 |
99 |
12.1% |
3.73 |
1,130 |
|
1990 |
1,125 |
140 |
271 |
N/A |
18 |
N/A |
24 |
13,300 |
85 |
12.4% |
4.15 |
1,850 |
|
1991 |
1,240 |
130 |
353 |
N/A |
17 |
N/A |
27 |
15,800 |
78 |
10.5% |
3.51 |
1,740 |
|
1992 |
1,485 |
138 |
347 |
N/A |
17 |
N/A |
23 |
15,700 |
95 |
9.3% |
4.28 |
1,430 |
|
1993 |
1,393 |
130 |
327 |
N/A |
18 |
N/A |
23 |
15,300 |
91 |
9.3% |
4.26 |
1,500 |
|
1994 |
1,484 |
141 |
330 |
N/A |
19 |
N/A |
22 |
14,400 |
103 |
9.5% |
4.50 |
1,490 |
|
1995 |
1,396 |
132 |
392 |
N/A |
18 |
N/A |
26 |
13,700 |
102 |
9.4% |
3.60 |
1,900 |
|
1996 |
1,295 |
143 |
361 |
N/A |
19 |
N/A |
19 |
11,900 |
109 |
11.0% |
3.60 |
1,600 |
|
1997 |
1,112 |
135 |
327 |
N/A |
19 |
N/A |
29 |
10,800 |
103 |
12.1% |
3.40 |
2,685 |
|
1998 |
1,034 |
134 |
338 |
N/A |
20 |
N/A |
34 |
10,800 |
96 |
13.0% |
3.06 |
3,148 |
|
1999 |
1,085 |
161 |
361 |
N/A |
21 |
N/A |
37 |
11,100 |
97 |
14.8% |
3.01 |
3,333 |
Avondale Industries (1985-1998)
Avondale did not publish an annual report for 1999.
|
Data Extracted from the Company's 10-K ($mm) |
Other Interesting Data |
|||||||||||
|
Year |
Revenue |
Operating Profit |
Total Assets |
Property, Plant and Equipment |
Annual Dep'n |
Cum. Dep'n |
Cap Ex |
Number of Employees |
Revenue per Employee ($000) |
Profit as a % of Revenue |
Asset Turnover |
Cap Ex per Employee ($) |
|
1985 |
436 |
5.3 |
302 |
190 |
10.4 |
16.1 |
27.0 |
4,600 |
95 |
1.2% |
1.4 |
5,870 |
|
1986 |
483 |
22.1 |
485 |
196 |
22.5 |
26.4 |
5.3 |
6,250 |
77 |
4.6% |
1.0 |
848 |
|
1987 |
521 |
36.4 |
349 |
202 |
19.2 |
45.2 |
6.0 |
7,000 |
74 |
7.0% |
1.5 |
857 |
|
1988 |
570 |
39.8 |
419 |
217 |
18.9 |
63.3 |
5.6 |
8,500 |
56 |
7.0% |
1.4 |
659 |
|
1989 |
708 |
32.1 |
477 |
222 |
12.2 |
63.4 |
14.0 |
8,500 |
83 |
4.5% |
1.5 |
1,647 |
|
1990 |
752 |
(4.0) |
491 |
235 |
12.2 |
75.9 |
13.1 |
8,500 |
88 |
(0.5%) |
1.5 |
1,541 |
|
1991 |
777 |
(58.2) |
384 |
240 |
12.9 |
86.5 |
4.6 |
8,200 |
95 |
(7.5%) |
2.0 |
561 |
|
1992 |
576 |
7.5 |
346 |
241 |
12.3 |
97.5 |
2.2 |
7,500 |
77 |
1.3% |
1.7 |
293 |
|
1993 |
457 |
3.4 |
302 |
229 |
11.8 |
103.4 |
2.9 |
6,700 |
68 |
0.7% |
1.5 |
433 |
|
1994 |
476 |
16.9 |
273 |
232 |
11.6 |
112.8 |
5.1 |
6,200 |
77 |
3.6% |
1.7 |
823 |
|
1995 |
576 |
26.5 |
317 |
252 |
9.8 |
121.7 |
21.3 |
5,300 |
109 |
4.6% |
1.8 |
4,019 |
|
1996 |
625 |
36.8 |
363 |
255 |
10.8 |
127.0 |
13.8 |
5,600 |
112 |
5.9% |
1.7 |
2,464 |
|
1997 |
614 |
43.6 |
376 |
265 |
10.5 |
134.5 |
13.6 |
6,850 |
90 |
7.1% |
1.6 |
1,985 |
|
1998 |
749 |
36.9 |
397 |
290 |
8.9 |
141.2 |
27.7 |
5,550 |
135 |
4.9% |
1.9 |
4,991 |
Litton Ship Systems
In 2000, Litton published the first results for Litton Ship Systems that included both Ingalls and Avondale.
|
Data Extracted from the Company's 10-K ($mm) |
Other Interesting Data |
|||||||||||
|
Year |
Revenue |
Operating Profit |
Total Assets |
Property, Plant & Equipment |
Annual Dep'n |
Cum. Dep'n |
Cap Ex |
Number of Employees |
Revenue per Employee ($000) |
Profit as a % of Revenue |
Asset Turnover |
Cap Ex per Employee |
|
2000 |
1,983 |
279 |
1,136 |
N/A |
49 |
N/A |
110 |
18,100 |
110 |
14.1%) |
1.75 |
6,077 |
Newport News Shipbuilding (1985-2000)
|
Data Extracted from the Company's 10-Ks ($mm) |
Other Interesting Data |
|||||||||||
|
Year |
Revenue |
Operating Profit |
Total Assets |
Property, Plant & Equipment |
Annual Dep'n |
Cum. Dep'n |
Cap Ex |
Number of Employees
|
Revenue per Employee |
Profit as a % of Revenue |
Asset Turnover
|
Cap Ex per Employee
|
|
1985
|
1,801
|
285
|
963
|
1,084
|
36 |
287
|
152
|
30,000
|
60
|
15.8%
|
1.87
|
5,070
|
|
1986
|
1,641
|
246
|
1,083
|
1,190
|
43 |
325
|
109
|
28,500
|
58
|
15.0%
|
1.52
|
2,250
|
|
1987
|
1,659
|
175
|
1,294
|
1,306
|
48 |
374
|
102
|
28,500
|
58
|
10.5%
|
1.28
|
3,580
|
|
1988
|
1,671
|
175
|
1,451
|
1,361
|
53 |
400
|
85
|
29,000
|
58
|
10.5%
|
1.15
|
2,930
|
|
1989
|
1,949
|
200
|
1,469
|
1,412
|
59 |
449
|
73
|
28,000
|
70
|
10.3%
|
1.33
|
2,610
|
|
1990
|
2,113
|
225
|
1,499
|
1,491
|
65 |
504
|
85
|
29,000
|
73
|
10.6%
|
1.41
|
2,930
|
|
1991
|
2,216
|
225
|
1,412
|
1,536
|
72 |
566
|
64
|
28,000
|
79
|
10.2%
|
1.45
|
2,290
|
|
1992
|
2,265
|
249
|
1,450
|
1,555
|
74 |
627
|
35
|
24,500
|
92
|
11.0%
|
1.54
|
1,430
|
|
1993
|
1,861
|
225
|
1,235
|
1,527
|
72 |
659
|
36
|
22,000
|
85
|
12.1%
|
1.46
|
1,640
|
|
1994
|
1,753
|
200
|
1,263
|
1,525
|
70 |
729
|
29
|
20,000
|
88
|
11.4%
|
1.30
|
1,450
|
|
1995
|
1,756
|
160
|
1,380
|
1,616
|
67 |
796
|
77
|
18,200
|
96 |
9.1% |
1.30 |
4,224 |
|
1996 |
1,870
|
140
|
1,489
|
1,697
|
65 |
861
|
74
|
17,900
|
104
|
7.5%
|
1.30
|
4,126
|
|
1997 |
1,707
|
(19)
|
1,476
|
1,634
|
57 |
818
|
31
|
18,400
|
93
|
(1.1%)
|
1.16
|
1,685
|
|
1998 |
1,862
|
175
|
1,600
|
1,608
|
62 |
845
|
26
|
18,000
|
103
|
9.4%
|
1.16
|
1,444
|
|
1999 |
1,863 |
218 |
1,512 |
1,600 |
66 |
884 |
29 |
17,300 |
108 |
11.7% |
1.23 |
1,676 |
|
2000 |
2,072 |
206 |
1,476 |
1,601 |
55 |
909 |
35 |
18,000 |
115 |
9.9% |
1.29 |
1,944 |
Comparative Financial Data for Litton Industries (1996-2000)
The following tables present the data for the past five years in the same format as those for the major foreign shipbuilders.
| LITTON INDUSTRIES | 1996 | 1997 | 1998 | 1999 | 2000 |
| mm USD | mm USD | mm USD | mm USD | mm USD | |
| Net Sales | 4,236 | 4,789 | 5,149 | 5,607 | 5,588 |
| Operating Margin | 357 | 414 | 457 | 387 | 562 |
| Operating Margin (%) | 8.4% | 8.6% | 8.9% | 6.9% | 10.1% |
| Net Income | 182 | 189 | 218 | 149 | 221 |
| Net Income (%) | 4.3% | 3.9% | 4.2% | 2.7% | 4.0% |
| Total Assets | 3,817 | 3,921 | 4,511 | 4,653 | 4,836 |
| Stockholders' Equity | 1,099 | 1,248 | 1,397 | 1,518 | 1,496 |
| Property, Plant and Equipment | 708 | 785 | 763 | 780 | 851 |
| Depreciation | 125 | 147 | 157 | 170 | 189 |
| Capital Expenditure | 105 | 127 | 144 | 160 | 183 |
| Employees | 39,100 | 38,300 | 40,500 | 40,300 | 40,300 |
| Net Sales/Employee | 108,338 | 125,039 | 127,136 | 139,132 | 138,660 |
| Shipbuilding Unit | |||||
| Net Sales | 1,920 | 1,726 | 1,783 | 1,865 | 1,983 |
| Operating Margin | 180 | 179 | 181 | 209 | 279 |
| Operating Margin (%) | 9.4% | 10.4% | 10.2% | 11.2% | 14.1% |
| Total Assets | 724 | 703 | 735 | 754 | 1,136 |
| Depreciation | 30 | 29 | 29 | 30 | 49 |
| Capital Expenditure | 33 | 43 | 62 | 72 | 110 |
| Employees | 17,500 | 16,400 | 16,400 | 16,600 | 18,100 |
| Net Sales/Employee | 109,714 | 105,244 | 108,720 | 112,349 | 109,558 |
| Shipbuilding Proportions | |||||
| Net Sales | 45.3% | 36.0% | 34.6% | 33.3% | 35.5% |
| Operating Margin | 50.4% | 43.2% | 39.6% | 54.0% | 49.6% |
| Total Assets | 19.0% | 17.9% | 16.3% | 16.2% | 23.5% |
| Depreciation | 24.0% | 19.7% | 18.5% | 17.6% | 25.9% |
| Capital Expenditure | 31.4% | 33.9% | 43.1% | 45.0% | 60.1% |
| Employees | 44.8% | 42.8% | 40.5% | 41.2% | 44.9% |
| Net Sales/Employee | 101.3% | 84.2% | 85.5% | 80.8% | 79.0% |
Comparative Financial Data for Newport News (1996-2000)
The following tables present the data for the past five years in the same format as those for the major foreign shipbuilders.
| NEWPORT NEWS | 1996 | 1997 | 1998 | 1999 | 2000 |
| mm USD | mm USD | mm USD | mm USD | mm USD | |
| Net Sales | 1,870 | 1,707 | 1,862 | 1,863 | 2,072 |
| Operating Margin | 140 | (19) | 175 | 218 | 206 |
| Operating Margin (%) | 7.5% | -1.1% | 9.4% | 11.7% | 9.9% |
| Net Income | 55 | (48) | 66 | 97 | 90 |
| Net Income (%) | 2.9% | -2.8% | 3.5% | 5.2% | 4.3% |
| Total Assets | 1,489 | 1,515 | 1,600 | 1,512 | 1,476 |
| Stockholders' Equity | 232 | 183 | 232 | 273 | 258 |
| Property, Plant and Equipment | 836 | 816 | 763 | 716 | 692 |
| Depreciation | 65 | 57 | 62 | 66 | 55 |
| Capital Expenditure | 74 | 31 | 26 | 29 | 35 |
| Employees | 17,937 | 18,400 |