As US defense giant Northrop Grumman plans to install a production line for 30 mm caliber ammunition within the territory of Lithuania’s Giraites Ginkluotes Gamykla, the country’s small caliber ammunition manufacturer, in Kaunas District by mid-2026, BNS presents the key facts about the American corporation.
US government as main client
Headquartered in the US state of Virginia, “Northrop Grumman positions presents itself as a leading global aerospace and defense technology company, providing products and solutions to customers in the US and other countries.
The company manufactures and supplies space systems, military aircraft, missile defense, advanced weapons and long-range artillery capabilities, mission, networking and communications systems, as well as strategic deterrence systems, microelectronics and cyber technologies.
Northrop Grumman claims to provide products and services to customers in 25 countries, but its main customer is the US government. The company supplies the US Department of Defense, the Air Force, the Navy, the intelligence community, and NASA.
Sales to the US government accounted for 85-86 percent of Northrop Grumman’s total sales between 2021 and 2023, according to the corporation’s report last year.
Investment groups and funds among key shareholders
According to Nasdaq, the US stock exchange operator, 83.53 percent of the company’s shares are held by more than 1,600 institutional investors. At the end of June, 11.5 percent of its shares were held by the US financial services company State Street, 9.8 percent belonged to Vanguard, one of the world’s largest US investment groups, and 8.4 percent were owned by BlackRock, a US investment firm.
Northrop Grumman is listed on the New York Stock Exchange. Its one share was worth around 533 US dollars on Wednesday afternoon (Lithuanian time).
Expects profit and revenue growth
Northrop Grumman’s revenue grew by 8 percent to 20.351 billion US dollars in the first half of this year, compared to the same period last year. It earned a net profit of 1.884 billion US dollars, up by 14 percent.
“With sustained global demand for our products, our 2024 guidance reflects continued strong sales and earnings growth. In addition, we’re reaffirming our cash flow outlook for 2024 and 2025, with free cash flow expected to grow at a greater than 15 percent CAGR through 2026. Northrop Grumman’s solid performance, record backlog and differentiated portfolio support our outlook for robust cash generation and our plans to return a significant amount of capital to shareholders,” Kathy Warden, Northrop Grumman’s board chair, CEO and president said in Northrop Grumman’s Q4 2023 financial report.
In 2023, Northrop Grumman’s sales stood at 39.290 billion US dollars, up by 7 percent from the previous year, its net profit dropped 58 percent to 2.056 billion euros.
This year, the company expects to generate between 41 billion and 41.4 billion euros in revenue.
The corporation invested 3 billion US dollars into research, development and innovation last year.
In Europe, Northrop Grumman says it has more than 2,200 employees in the UK, France, Germany, Italy, Poland, France, Germany and the Netherlands. Jobs will also be created by opening a production line in Lithuania.
Stephen O’Bryan, one of the corporation’s vice-presidents in charge of global business development, said in Vilnius on Monday that the new facility in Lithuania would expand its capabilities and support NATO’s forces in the field of medium caliber ammunition.
Lithuanian Defense Minister Laurynas Kasciunas says all the details related to the production of 30 mm ammunition at Giraites would be agreed and the contract would signed by the end of this year. Northrop Grumman should then start ammunition production in Lithuania by mid-2026.
The 30 mm caliber ammunition produced by the US company is used by the Lithuanian army’s IFVs Vilkas.
Source: BNS
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