Northrop Wins Contract, Ups Buy Back

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Northrop Grumman Corp. said it has been awarded a contract from Boeing Co. to upgrade all four of Japan’s E-767 Airborne Warning and Control System aircraft.


The contract is worth an estimated $73 million and will have the Los Angeles-based defense and government contractor providing radar system improvements, support equipment, as well as complete AWACS mission equipment support. A follow-up contract is planned to begin in 2010.


“This is the most significant upgrade to the Japanese E-767 AWACS fleet since its delivery in the late 1990s,” Chet Silfee, manager of the Japanese program, said.


Separately, Northrop also said its board of directors authorized the repurchase of an additional $1 billion of stock options. This buy back adds to an original program initiated in August of 2003 when $700 million was authorized, of which $175 million remains.


Northrop’s Chief Executive Ron Sugar said the buy back should be completed within the next 24 months. The company has about 346 million shares outstanding.


Shares in Northrop were up $1.18 to $67.33 early Friday.

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