Paris Air Show
Aerospace |
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Litton Defines
New Directions
Litton's recent acquisition blitz has helped "refine the company's core capabilities and have added annual revenues of more than $1.5 billion," according to Chairman and Chief Executive Officer John Leonis. Litton has acquired six companies in the past 16 months. The company plans to continue their growth-through-acquisition strategy but failed to note any specific companies that have been targeted. Despite Litton's recent rise in debt ratio, which has nearly tripled in the last two years, Brown remains optimistic that a high cash flow will make further acquisitions possible, stating "We [Litton] have the flexibility and capacity to continue at the same pace." The company hopes to expand international markets as well, which currently account for 20 percent of overall sales. Michael Brown acknowledged Litton has no immediate interests in acquiring any Asia-based companies, but said company officials have not ruled it out. In conjunction with Litton's plans to target commercial markets, their Aero Products division announced the recent certification of AIME (Autonomous Integrity Monitored Extrapolation) a software algorithm designed to solve the Global Positioning Systems integrity problem. AIME allows airlines to remove other navigation systems from the aircraft, including VOR, DME, ADF, OMEGA, and LORAN while providing highly reliable navigation performance. Along with general strategy announcements, Litton also introduced LITOCS
1, an on-board oxygen generating system that promises low cost and high
performance. LITOCS 1 is compatible with the majority of new and existing
aircraft. |
Paris (June 15,
1997) -- Michael R. Brown, chief operating officer and director of Litton
Industries, Inc. provided details today on the company's strategy for the
next fiscal year and beyond. Although the company remains a long-time supplier
on defense programs, including the F-15, F-16 and Tornado and continues
as a participant in the F-22, Eurofighter and Comanche military programs,
Brown announced Litton's intentions to expand it's commercial business rather
than rely on the flat defense market.
Back in 1994, Litton's
commercial business accounted for roughly 10 percent of sales. For the upcoming
year, the company expects commercial figures to reach 40 to 50 percent of
total sales. Brown cited Litton's continued work in information technology
in both commercial marine and aircraft markets as the primary focus of the
company for sales and research and development.