29/08/2013 05:15:00

Northrop Grumman to Buy Qantas Defense Unit

Related content
27 Feb - 
Northrop Grumman Board Elects Janis G. Pamiljans Corpor..
17 Feb - 
Northrop Grumman Board Declares Quarterly Dividend
14 Feb - 
Northrop Grumman to Participate in Barclays Industrial ..

Northrop Grumman Corp. (NOC) on Wednesday agreed to buy the defense unit of Australian flag carrier Qantas in a deal that highlights the drive for defense contractors to boost revenues and their international exposure at a time of declining global military budgets.

The fifth-largest U.S. military contractor by sales is paying an undisclosed sum for Qantas Defence Services, or QDS, which provides support and maintenance for customers including the Royal Australian Air Force and services aircraft carrying government dignitaries.

Northrop Grumman generated around 10% of revenues from overseas military customers last year, lagging its big U.S. rivals, and the proposed deal highlights efforts to tap into faster-growing defense markets in Asia and the Middle East as the Pentagon and its suppliers scramble to handle ongoing automatic budget cuts and lingering uncertainty over future budgets.

The move also provides funds and focus for the efforts by Qantas Airways Ltd. Chief Executive Alan Joyce to stem losses at the airline's loss-making international business and invest in a domestic operation that's facing ever-fiercer competition.

"QDS complements our current integrated logistics and modernization efforts and advances our international strategy," said Wes Bush, Northrop's chief executive, in a statement.

The Qantas business employs more than 300 staff, supporting the Australian air force tanker refueling fleet, government VIP aircraft and navy patrol planes, Northrop said in its statement.

The unit last month also won a contract to refurbish four Lockheed Martin Corp, C130 military transport planes--formerly operated by the Royal Australian Air Force--for the Indonesian air force.

Write to Doug Cameron at doug.cameron@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

August 29, 2013 00:15 ET (04:15 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
Ingen indlæg

Regulatory news

Form 8.3 - Bovis Homes Group Plc

28/03/2017 14:49:02
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Full name of discloser: Unicredit SpA (b) Owner or controller of interests an..

Alliance Trust PLC : Net Asset Value(s)

28/03/2017 13:55:21
ALLIANCE TRUST PLC                                    At the close of business on Monday 27 March 2017: The Company's NAV per ordinary share, valued on a bid price basis with Debt at Par, was -       excluding income, 714.6p -       including income, 720.4p  The Company's NAV per ordinary share, valued on a bid price basis with Debt at Fair Value, was -       excluding income..

HSBC Bank Plc : Form 8.5 (EPT/RI) - Redrow PLC

28/03/2017 10:41:26
FORM 8.5 (EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY Rule 8.5 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Name of exempt principal trader: HSBC BANK PLC (b) Name of offeror/offe..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Under Armour, Inc. To Contact The Firm
2
Ericsson presents focused business strategy
3
RigNet deploys its first deep water 4G LTE system in the Gulf of Mexico and announces dramatic capacity increases to its state-of-the-art licensed 4G wireless network
4
Ericsson simplifies organization and names Executive Team
5
PICO Holdings, Inc. to Webcast Annual Meeting of Shareholders on May 4th, 2017

Related stock quotes

Qantas FPO 3.9900 0.3% Stock price increasing
Northrop Grumman Corpora.. 237.19 0.0% Stock price unchanged

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2017   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
29 March 2017 06:16:05
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20170324.2 - EUROWEB4 - 2017-03-29 07:16:05 - 2017-03-29 06:16:05 - 1000 - Website: OKAY