Chris Jasper/LONDON
US defence manufacturer Litton Industries has confirmed plans to sell its navigation and electronic warfare (EW) businesses as part of a strategic move to refocus on what it says are higher growth markets in other sectors. The decision also reflects the impact of ongoing consolidation in the two markets, which has seen Litton's rivals snapped up by primary manufacturers with full systems capabilities.
Litton's Advanced Electronics group, with annual sales of around $1.6 billion and 9,500 staff, was realigned as recently as September. Its navigation business competes with Honeywell, making Rockwell Collins - Honeywell's biggest competitor - a potential buyer.
Litton's main rivals in the EW arena are Northrop Grumman and the UK's BAE Systems. The latter plans to buy Lockheed Martin's Sanders EW business to build on a competency inherited from Marconi Electronic Systems. General Dynamics could be a buyer as it is looking to build up its electronics defence business.
Litton had made moves to build up both sides of the Advanced Electronics business, but failed to follow them through. Sanders fell to BAE and the "old" Honeywell's TCAS (traffic alert and collision avoidance system) business, shed as part of the AlliedSignal deal, went to Thomson-CSF Sextant. Litton also lost a patent battle with old Honeywell over ring-laser gyro navigational technology.
Litton chairman and chief executive Michael Brown says Advanced Electronics' various strengths mean "the group should provide even greater value for companies focused in those markets". It is not clear whether or not Litton aims to sell the group intact.
Litton's Advanced Electronic's Navigation Operations division is made up of: Aero Products, a supplier of airborne navigation systems; Guidance & Control Systems and Lital, specialists in military inertial navigation systems; Litef of Germany, a manufacturer of airborne navigation systems; Litton Marine Systems; Litton Systems Canada, which offers integrated electronic systems; and Germany-based Teldix, which makes head-up and head-down displays for military aircraft.
The EW division includes: Litton Advanced Systems, a specialist in electronic combat and air traffic management systems; Electron Devices, which produces microwave power devices for aircraft, surveillance and communications systems, and EW and missile seeking equipment; night vision specialist Electro-Optical Systems; Laser Systems, a leading manufacturer of airborne laser rangefinders; and Integrated Systems, a command and control systems specialist.
Litton says its "strategic restructuring" will see it focus on three core businesses - US Navy and commercial shipbuilding, commercial electronics and materials, and information technology systems - giving it a turnover of around $4.3 billion.
Source: Flight International
