Ling-Temco-Vought
| Company type | Public |
|---|---|
| Industry | Conglomerate (aerospace, airlines, electronics, steel production, sporting goods, meat packing, car rental services, pharmaceuticals) |
| Predecessor | Ling Electric Company |
| Founded | 1947 in Dallas, Texas, United States |
| Founder | James Ling |
| Defunct | 2001 |
| Fate | Ceased operations; assets acquired by Wilbur Ross and merged into International Steel Group |
| Successor | LTV Steel; International Steel Group (via acquisition) |
| Headquarters | Dallas, Texas (original); Cleveland, Ohio (later) , United States |
Area served | United States |
Key people | James Ling (founder), Paul Thayer (CEO after 1970), Raymond Hay (CEO after Thayer) |
| Products | Aircraft, missiles, unmanned aerial vehicles, steel products, sporting goods, pharmaceuticals, car rental services |
Number of employees | 29,000 (circa 1969) |
| Parent | None |
Ling-Temco-Vought (LTV) was a prominent American conglomerate that operated between 1961 and 2001. At its height, its business interests covered a wide range of sectors such as aerospace, airlines, electronics, steel production, sporting goods, meat packing, car rental services, and pharmaceuticals.
The enterprise began in 1947 under the name Ling Electric Company and underwent several name changes, becoming Ling-Temco-Vought, then LTV Corporation, before finally adopting the title LTV Steel prior to its closure in 2001.
Ling Electric Company
The electrical contracting firm Ling Electric Company was established in 1947 in Dallas, Texas by entrepreneur James Ling. After its initial public offering in 1955, Ling implemented innovative marketing techniques for stock sales, including direct door-to-door approaches and promotions at the State Fair of Texas.
Ling-Temco-Vought
Ling pursued rapid growth through acquisitions, purchasing L.M. Electronics in 1956 and Altec Electronics, a manufacturer of stereos and speakers, in 1959. In 1960, he merged with Temco Aircraft, known for its missile technology. The following year, with financial backing from insurance executive Troy Post and Texas oilman David Harold Byrd, Ling executed a hostile takeover of aerospace company Chance Vought, resulting in the formation of Ling-Temco-Vought.
Taking advantage of favorable low interest rates for financing, Ling assembled one of the largest conglomerates during the 1960s. His approach involved acquiring businesses whose profits surpassed borrowing costs or whose price-to-earnings ratios were lower than LTV’s, thereby enhancing overall earnings and elevating the stock price amidst minimal market oversight.
By 1964, Ling reorganized Ling-Temco-Vought into a holding company structure with three publicly traded subsidiaries: LTV Aerospace (which included Vought and most of Temco Aircraft), LTV Ling Altec (containing Altec Electronics), and LTV Electrosystems (holding the remaining assets). This division was designed to increase perceived shareholder value by making each component appear more valuable independently than as a combined entity. Segments of LTV Electrosystems were later divested to E-Systems, which eventually became part of L-3 Communications-Integrated Systems.
Acquisitions
In 1965, Ling further expanded by acquiring the wire and cable manufacturer Okonite. Two years later, Ling-Temco-Vought took control of Wilson and Company, a corporation twice its size at the time. Wilson was a diversified enterprise involved in meat packing, sporting goods manufacturing, and pharmaceuticals. Wilson’s president, Roscoe Haynie, was informed about the takeover only two weeks before it finalized. Subsequently, Ling separated Wilson into three distinct companies—meat packing, sporting goods (Wilson Sporting Goods), and pharmaceuticals (Wilson Pharmaceutical and Chemical)—which were then spun off on the American Stock Exchange.
In 1968, Ling-Temco-Vought acquired Greatamerica Corporation, the holding company of Troy Post that controlled Braniff International Airways and National Car Rental, as well as purchasing J & L Steel. The conglomerate also expanded into hospitality by acquiring resorts located in Acapulco and Guerrero, Mexico, along with the Steamboat Springs ski destination in Colorado. By 1969, LTV had grown to include ownership of 33 companies with a workforce of 29,000 employees, offering approximately 15,000 products and services, ranking it among the top 40 industrial firms nationwide.
Issues with Conglomerate Structure and Antitrust Concerns
In 1969, LTV announced total sales amounting to $3.6 billion (equivalent to $ today). However, investors observed that conglomerates such as LTV were not achieving growth rates surpassing those of their individual businesses prior to acquisition. During a market downturn, share values dropped significantly, with conglomerates being held responsible for contributing to financial market volatility. That same year, an antitrust lawsuit was initiated against the company.
By 1970, the board decided to remove founder James Ling from his leadership role; Ling subsequently departed, and former executive Paul Thayer assumed control.
LTV Corporation
Following an antitrust resolution in 1971, LTV divested its Braniff and Okonite units. Under Thayer’s leadership, the firm was renamed LTV Corporation. Later, Raymond Hay, previously with Xerox, succeeded Thayer as head of the company.
Initial Bankruptcy
In July 1986, LTV Corporation sought protection under Chapter 11 bankruptcy. At the time, it held assets valued at $6.14 billion ($ today) against liabilities totaling $4.59 billion, marking it as the largest bankruptcy in U.S. history up to that point.
The company underwent significant divestitures, including spinning off its aerospace division into the independent Vought Corporation. Its missile division was eventually integrated into Loral Corporation and later became part of Lockheed Martin Missiles and Fire Control. After merging its steel subsidiary Jones and Laughlin Steel Company with Republic Steel Corporation in 1984, LTV concentrated on steel manufacturing under the name LTV Steel, relocating its headquarters to Cleveland, Ohio in 1993.
LTV successfully emerged from Chapter 11 on June 28, 1993, concluding one of the lengthiest bankruptcy proceedings in U.S. history.
In 1999, LTV expanded by acquiring Pittsburgh-based Copperweld Corporation from the French company Imétal S.A.
Second Bankruptcy
On December 29, 2000, LTV Steel filed for Chapter 11 bankruptcy protection again and ultimately ceased operations on December 18, 2001. In February 2002, its assets were purchased by Wilbur Ross, who merged them with Weirton Steel to establish the International Steel Group. Several railroad subsidiaries—including Chicago Short Line Railway, Cuyahoga Valley Railway, and River Terminal Railway—were transferred to ISG Railways, while the Ohio Central Railroad System acquired both the Aliquippa and Southern Railroad and Mahoning Valley Railway. The former Monongahela Connecting Railroad is currently operated by the Allegheny Valley Railroad.
Also in 2002, Lombard Metals Corp from Bala Cynwyd, Pennsylvania acquired approximately 224 million pounds of steel inventory distributed across 58 locations nationwide.
Corporate Headquarters
In 1964, LTV constructed a new office building at 1600 Pacific Avenue in downtown Dallas to accommodate its operations alongside a bank and other tenants. After LTV vacated this space during the 1980s, ownership and tenancy changed multiple times until it was redeveloped in 2015 into a mixed-use facility featuring a Hilton Garden Inn hotel on lower levels and residential apartments above. The residential units were branded as LTV Tower Apartments, referencing the company’s heritage with the marketing slogan "Love The View."
During its later period, LTV operated out of LTV Center located at 2001 Ross Avenue, which opened in 1985. Following LTV’s relocation to Cleveland, this building was renamed Trammell Crow Tower and is presently known as Trammell Crow Center.
Aircraft
Missiles
Unmanned Aerial Vehicles
References
Notes
Bibliography
Further reading
- – covering the founder and company throughout the conglomerate period.
External links
- LTV Steel – Western Reserve Historical Society
- The LTV Corporation – Harvard Business School Lehman Brothers Collection
- LTV Corporation – Texas State Historical Association
- Articles with short description
- Vought
- Conglomerate companies of the United States
- Defunct aircraft manufacturers of the United States
- Aerospace companies of the United States
- Defunct electronics companies of the United States
- Manufacturing companies based in Cleveland
- Defunct companies based in Cleveland
- Electronics companies established in 1947
- Manufacturing companies established in 1947
- Conglomerate companies established in 1956
- Conglomerate companies disestablished in 2000
- Manufacturing companies disestablished in 2000
- 1947 establishments in Ohio
- 2000 disestablishments in Ohio
- Companies that have filed for Chapter 11 bankruptcy
- Companies that filed for Chapter 11 bankruptcy in 1986
- Companies that filed for Chapter 11 bankruptcy in 2000
- Braniff
- Defunct manufacturing companies based in Ohio
- Companies formerly listed on the New York Stock Exchange
- Companies formerly traded over-the-counter in the United States