Litton Industries

Litton Industries was an American defense contractor and diversified industrial conglomerate that operated from 1953 until its acquisition by Northrop Grumman in 2001. Its principal areas included military and aerospace electronics, navigation and guidance systems, electronic warfare equipment, shipbuilding, marine systems, and information technology. The company also entered numerous unrelated consumer, office, publishing, food, hospitality, appliance, and furniture businesses during the conglomerate expansion of the 1960s. The business began as Electro Dynamics Corporation, established in 1953 by Charles Bates "Tex" Thornton with Roy Ash and Hugh Jamieson. In 1954, Thornton acquired the vacuum-tube producer Litton Industries Inc. from inventor Charles Litton Sr. in a transaction financed in part through a Lehman Brothers loan. The acquiring company adopted the Litton name. Its early strategy centered on supplying increasingly sophisticated electronics to the United States government and defense establishment. During the late 1950s and early 1960s, Litton produced calculators, inertial guidance equipment for aircraft, potentiometers, duplexers, communications equipment, and electronic-warfare systems. Government business represented about half of the company's activity during this formative period. Litton pursued rapid expansion through acquisitions. It combined its technological capabilities with Monroe Calculating Machine's sales and service network, acquired Royal McBee, and entered publishing through the creation of Van Nostrand-Reinhold after acquiring D. Van Nostrand Company and Chapman-Reinhold. Its purchase of Ingalls Shipbuilding in 1961 marked a major move into shipbuilding, submarines, and marine industrial work. The company later acquired Triumph-Adler, a major European typewriter and office-equipment manufacturer. At its height, Litton owned or controlled businesses ranging from Royal and Adler typewriters to Moffat appliances, Stouffer food and hospitality operations, office equipment, furniture, and industrial technology companies. By 1963, the business had reached approximately $500 million in scale, with reported revenue of $393.8 million. The conglomerate model became increasingly difficult to manage during the 1970s. Disappointing sales and weaker performance led to a leadership change in 1973, when Fred O'Green replaced Roy Ash as president. Under the revised strategy, Litton sold loss-making subsidiaries and concentrated more heavily on profitable technology and defense activities. The company also secured a large Saudi Arabian Air Force contract, described in the reference material as a $1.6 billion deal. Reported profits rose from $44 million in 1979 to $78 million in 1983. During the 1980s, Litton continued to withdraw from publishing, medical products, office furniture, and microwave ovens, while emphasizing higher-technology activities. Acquisitions such as Itek Corporation and Core Laboratories strengthened its electronic, technical, and industrial portfolio. In the early 1990s, Litton separated its military and commercial operations. The approximately $2 billion commercial group, including oilfield services and automated assembly-line activities, became Western Atlas, Inc.; Western Atlas was subsequently spun off as a separate business. Litton continued acquiring defense and technology companies, including TASC in 1998. In 2000, TASC disposed of several stand-alone commercial operations, including Adesso Software, WSI Corporation, and Emerge. Litton reported fiscal-year 2000 sales of $5.6 billion and net income of $218 million, according to the supplied reference material. On December 21, 2000, Litton and Northrop Grumman announced an agreement under which Northrop Grumman would acquire Litton shares in a transaction valued at $5.1 billion. The transaction closed on May 31, 2001, ending Litton Industries as an independent company. Many of its defense and aerospace activities continued within…

Litton Industries originated in 1953 as Electro Dynamics Corporation, founded by Charles Bates "Tex" Thornton together with Roy Ash and Hugh Jamieson. The company initially pursued electronics and defense applications. In 1954, Thornton acquired the existing Litton Industries vacuum-tube business from Charles Litton Sr. with financing that included a Lehman Brothers loan. The company adopted the Litton name and built its early business around communications, navigation, guidance, electronic warfare, and other equipment for the United States government. During the late 1950s and early 1960s, Litton used acquisitions to expand both its capabilities and distribution. Its combination with Monroe Calculating Machine linked Litton's technology with Monroe's sales and service infrastructure. The company also produced calculators, inertial guidance systems, potentiometers, duplexers, and related electronic equipment. By this period, approximately half of its activity was connected to the U.S. government. In 1961, Litton acquired Ingalls Shipbuilding, creating a major new platform in shipbuilding, submarines, and marine industrial work. By 1963, the company had reached roughly $500 million in overall scale, with reported revenue of $393.8 million. Litton's acquisition program accelerated through the 1960s. It acquired Royal McBee in 1964, entered book publishing through the combination of D. Van Nostrand Company and Chapman-Reinhold in 1968, and bought Triumph-Adler in 1969. At its peak, the corporation owned a wide variety of businesses, including typewriters, appliances, food and hospitality, office equipment, furniture, publishing, shipbuilding, and electronics. This breadth reflected the era's enthusiasm for conglomerate structures, in which a parent company attempted to combine unrelated businesses under centralized financial and managerial control. The model came under pressure in the 1970s as several businesses delivered disappointing results. In 1973, Fred O'Green replaced Roy Ash as president. Litton then sold certain loss-making subsidiaries and emphasized more profitable operations. A major Saudi Arabian Air Force transaction provided an important defense-oriented opportunity. The supplied reference records profits increasing from $44 million in 1979 to $78 million in 1983. In the 1980s, Litton divested publishing, medical products, office furniture, and microwave activities and increasingly presented itself as a sophisticated technology and defense company. It acquired Itek Corporation and Core Laboratories, among other technology-oriented assets. In the early 1990s, the commercial and military sides were separated. The commercial business, including oilfield services and automated assembly-line operations, was placed in Western Atlas, Inc., which was later spun off. This restructuring substantially reduced Litton's exposure to unrelated consumer and office brands. Litton's remaining activities centered on defense electronics, aerospace systems, shipbuilding, marine technology, and technical services. The company acquired TASC in 1998. In 2000, TASC sold several stand-alone commercial operations, including Adesso Software, WSI Corporation, and Emerge. Litton reported fiscal-year 2000 sales of $5.6 billion and net income of $218 million in the supplied reference material. Northrop Grumman announced its agreement to acquire Litton on December 21, 2000. The transaction, described as worth approximately $5.1 billion, closed on May 31, 2001. Litton therefore ceased to operate as an independent company, while portions of its defense and aerospace portfolio continued under Northrop Grumman and subsequent successor organizations.

• 2001

  Northrop Grumman completes acquisition

  [1]Litton Industriesen.wikipedia.org

  The transaction closed on May 31, ending Litton Industries as an independent company.

• 1998

  TASC is acquired

  [1]Litton Industriesen.wikipedia.org

  The acquisition strengthened Litton's technical services and information-technology capabilities.

• 1990

  Military and commercial businesses are separated

  [1]Litton Industriesen.wikipedia.org

  Litton separated its military activities from its commercial portfolio, with the latter organized as Western Atlas.

• 1973

  Portfolio refocusing begins

  [1]Litton Industriesen.wikipedia.org

  Following disappointing sales, Fred O'Green became president and Litton began disposing of weaker subsidiaries.

• 1969

  Triumph-Adler is acquired

  [1]Litton Industriesen.wikipedia.org

  Litton added a major German typewriter and European office-equipment manufacturer.

• 1968

  Van Nostrand-Reinhold is formed

  [1]Litton Industriesen.wikipedia.org

  Litton merged D. Van Nostrand Company and Chapman-Reinhold after acquiring the businesses, creating a publishing operation.

• 1964

  Royal McBee is acquired

  [1]Litton Industriesen.wikipedia.org

  The transaction expanded Litton's office-equipment and typewriter interests.

• 1961

  Entry into shipbuilding

  [1]Litton Industriesen.wikipedia.org

  The acquisition of Ingalls Shipbuilding established a significant marine and naval-business platform.

• 1954

  The company adopts the Litton name

  [1]Litton Industriesen.wikipedia.org

  Thornton acquired the existing Litton Industries vacuum-tube company from Charles Litton Sr. and used its name for the expanding enterprise.

• 1953

  Electro Dynamics Corporation is founded

  [1]Litton Industriesen.wikipedia.org

  Charles Bates "Tex" Thornton, Roy Ash, and Hugh Jamieson established the company that would become Litton Industries.

A large American technology and defense conglomerate that evolved from electronics manufacturing into a diversified acquisition group, then refocused on defense, aerospace, marine, and other advanced industrial systems before being acquired by Northrop Grumman.

• Defense technology · 1953

  Defense electronics

  Litton's original and enduring business base included communications equipment, electronic-warfare systems, electronic components, and other defense electronics. These products served the U.S. government and military customers and formed the foundation for the company's later aerospace and military portfolio.

• Aerospace systems

  Inertial guidance systems

  The company manufactured inertial guidance equipment for aircraft and developed navigation-related technologies. These systems represented Litton's move from general electronics into high-value aerospace and defense applications.

• Shipbuilding · 1961

  Shipbuilding and naval systems

  After acquiring Ingalls Shipbuilding, Litton became a major shipbuilding contractor involved in naval vessels, submarines, and marine industrial work. This became one of the company's most important defense businesses.

• Marine electronics

  Marine navigation systems

  Litton's marine portfolio included navigation, radar, bridge, and vessel-monitoring technologies associated with businesses such as Sperry Marine, C. Plath, and LITEF. The portfolio addressed commercial shipping and specialized marine users as well as defense markets.

• Office equipment · 1964

  Office equipment and typewriters

  Through Royal McBee, Royal, and Triumph-Adler, Litton operated substantial typewriter and office-equipment businesses. These assets reflected the conglomerate's 1960s diversification before later portfolio retrenchment.

• Information technology

  Technical services and information technology

  Litton operated computer-services, data-systems, network-access, and technical-services businesses. The acquisition of TASC in 1998 reinforced the company's role in information technology, systems integration, and government-oriented technical work.

• Litton Industries bombing

  The Litton Industries article identifies a bombing incident associated with the company, but the supplied material does not provide sufficient details to characterize its circumstances, responsibility, or outcome.

  Source

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• 2000

  Accept Northrop Grumman acquisition proposalM&A

  Background

  By the late 1990s and 2000, Litton had become a takeover target as the defense industry consolidated after the Cold War.

  Action taken

  Litton agreed to be acquired by Northrop Grumman in a share transaction announced on December 21, 2000.

  Aftermath

  The transaction closed on May 31, 2001, and Litton ceased to exist as an independent company.

  Transaction value. Approximately $5.1 billion (Announced December 21, 2000; completed May 31, 2001)

  Source

• 1990

  Separate military and commercial operationsStrategy

  Background

  The company continued to streamline after the decline of the conglomerate model and the need to distinguish defense activities from commercial businesses.

  Action taken

  Litton separated its military operations from a commercial group that became Western Atlas, Inc.

  Aftermath

  Western Atlas was later spun off, while Litton retained a stronger defense and aerospace orientation.

  Source

• 1980

  Exit selected consumer and office businessesStrategy

  Background

  Litton sought to reduce exposure to publishing, medical products, office furniture, and microwave products as it pursued a more technology-focused identity.

  Action taken

  The company divested or withdrew from several unrelated businesses and acquired technology-oriented companies including Itek Corporation and Core Laboratories.

  Aftermath

  Litton's portfolio became more concentrated in defense, aerospace, electronics, and industrial technology.

  Source

• 1973

  Refocus the conglomerate on profitable operationsStrategy

  Background

  Several years of disappointing sales made the broad conglomerate portfolio increasingly difficult to sustain.

  Action taken

  After Fred O'Green became president, Litton sold selected loss-making subsidiaries and concentrated resources on stronger businesses.

  Aftermath

  The company reported higher profits in the early 1980s and gradually moved back toward defense and advanced technology.

  Source

1. 1Litton Industriesen.wikipedia.org