29/08/2013 05:15:00

Northrop Grumman to Buy Qantas Defense Unit

Related content
11 Jan - 
Invitation to Northrop Grumman’s Fourth Quarter 2016 Fi..
04 Jan - 
Northrop Grumman Announces Webcast, Conference Call of ..
08 Dec - 
Northrop Grumman Elects Mark A. Welsh III to its Board ..

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

HSBC Bank Plc : Form 8.5 (EPT/RI) - London Stock Exchange Group Plc

23/01/2017 10:32:57
FORM 8.5 (EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY ..

Alliance Trust PLC : Transaction in Own Shares

23/01/2017 07:00:01
23 January 2017  Alliance Trust PLC TRANSACTION IN OWN SHARES  The Board of Alliance Trust PLC ("the Company") announces that on 20 January 2017 the Comp..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Fingerprint Cards' member of the board Lars Söderfjell taken into custody
2
Hands-on Techniques Provide Pain Relief at Faith Chiropractic, PS in Washington
3
Wichita Optometry Helps Dry Eye Sufferers with Cutting-Edge LipiFlow® Gland Function Treatment
4
Philips Lighting proposes two new Supervisory Board members
5
Atlantic Petroleum completes the sale of its Norwegian activities.

Related stock quotes

Qantas FPO 3.43 -1.2% Stock price decreasing
Northrop Grumman Corpora.. 232.11 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.
 
23 January 2017 14:44:09
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20170120.2 - EUROWEB6 - 2017-01-23 15:44:09 - 2017-01-23 14:44:09 - 1000 - Website: OKAY