29/08/2013 05:15:00

Northrop Grumman to Buy Qantas Defense Unit

Related content
06 Dec - 
Northrop Grumman Receives Second Request from FTC
29 Nov - 
Orbital ATK Shareholders Vote to Approve Acquisition by..
22 Nov - 
Northrop Grumman to Participate in Credit Suisse 5th An..

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

Dimensional Fund Advisors Ltd. : Form 8.3 - Tesco Plc - Ordinary shares

11/12/2017 10:25:28
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:   Dimensional Fund Advisors Ltd. ("Dimensional"), in its capacity ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Karyopharm Presents Positive Phase 1/2 Eltanexor Data at the American Society of Hematology 2017 Annual Meeting
2
Algeco Scotsman Announces Debt Package for Refinancing, Acquisition of Touax Solutions Modulaires SAS and Exercise of Put Option
3
Karyopharm Presents Positive Selinexor Data from the Phase 1b/2 STOMP Study at the American Society of Hematology 2017 Annual Meeting
4
Algeco Scotsman Announces Debt Package for Refinancing, Acquisition of Touax Solutions Modulaires SAS and Exercise of Put Option
5
ZIOPHARM Announces Presentation of Data from T-Cell Therapy Programs at ASH Annual Meeting

Related stock quotes

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2017   Disclaimer and Terms of Use
Quote information is delivered by Morningstar.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
11 December 2017 21:00:35
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20171124.1 - EUROWEB5 - 2017-12-11 22:00:35 - 2017-12-11 21:00:35 - 1000 - Website: OKAY