Northrop Bailing Out of Shipbuilding Business?

There's an AP article out today that says Northrop may be exiting the shipbuilding business.

Shares of defense contractor Northrop Grumman Corp. rose Wednesday after the company said it may sell or spin off its business making warships for the Navy.
Northrop shares rose $2.12, or 3.8 percent, to $57.38 in midday trading.
The company, one of the largest suppliers of ships and submarines for the Navy, said it will close down an Avondale, La. shipyard by 2013. It also said it was exploring "strategic alternatives" for its entire shipbuilding business, which last year made up about 18 percent of the company's $33 billion in total revenue.

[-- snip --]

Rubel estimated that Northrop's decision to move work from the Avondale facility to a shipyard in Pascagoula, Miss., would have little impact on the company's bottom line.

Somehow, I have a feeling the decision will impact Louisiana's bottom line, at a time when they can ill afford it. Avondale is across the river from New Orleans.


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By: Brant