Litton Industries
| File:Litton logo.svg | |
| Company type | Public |
|---|---|
| NYSE: LIT | |
| Industry | Defense |
| Founded | 1953 |
| Founders | Charles Bates "Tex" Thornton Roy Ash Hugh Jamieson |
| Defunct | 2001 |
| Fate | Acquired by Northrop Grumman |
| Successor | Northrop Grumman |
| Headquarters | Beverly Hills, California, U.S. |
| Products | Shipbuilding Aerospace Electronic components Information technology |
| Website | https://web.archive.org/web/20010515221700/http://www.litton.com/ |
Litton Industries, Inc. was a leading American defense contractor engaged in shipbuilding, aerospace, electronics manufacturing, and IT sectors. Established in 1953 by entrepreneur Charles Bates "Tex" Thornton along with Roy Ash and Hugh Jamieson, the company operated from its headquarters in Beverly Hills, California. Initially named Electro Dynamics Corporation, it adopted the Litton Industries name following its acquisition of a vacuum tube manufacturer founded by Charles Litton Sr.
Throughout the 1960s, Litton implemented an assertive diversification policy, acquiring numerous firms across unrelated industries. This approach transformed it into one of the largest conglomerates in the United States, with holdings such as Royal Typewriters, the German office equipment producer Triumph-Adler, Moffat appliance manufacturing, Stouffer’s food products, and various office furniture and equipment companies.
By the late 1970s, after experiencing the typical financial setbacks associated with conglomerates, Litton realigned its focus on defense-related operations. The company divested many non-defense assets to concentrate on core competencies, resulting in improved profitability highlighted by a $1.6 billion contract with Saudi Arabia’s Air Force. Annual revenues increased from $393.8 million in 1963 to over $5 billion by the year 2000.
During the 1980s and 1990s, Litton intensified its emphasis on advanced technology sectors through acquisitions such as Itek Corporation and Core Laboratories. Concurrently, it spun off its commercial enterprises into Western Atlas, Inc., a $2 billion firm specializing in oilfield services and automated manufacturing systems.
Litton reached peak financial results in 2000 with sales totaling $5.6 billion and net earnings of $218 million. That same year, it expanded its IT services portfolio by acquiring TASC, Inc., while also divesting certain commercial operations.
On December 21, 2000, Litton announced a $5.1 billion acquisition deal with Northrop Grumman. The transaction was finalized on May 31, 2001, merging Litton’s defense capabilities into Northrop Grumman’s global framework and concluding Litton’s existence as an independent company.
History
Litton Industries originated as an electronics manufacturer supplying navigation, communication, and electronic warfare equipment to the U.S. Department of Defense. Founder Tex Thornton secured funding from Lehman Brothers to purchase Litton Industries Inc., leveraging anticipated growth in defense spending to expand through acquisitions such as Monroe Calculating Machine Company.
In 1961, Litton entered the shipbuilding sector by acquiring Ingalls Shipbuilding for $8 million, thereby gaining access to submarine construction and oil drilling equipment markets. By 1963, the company’s revenues approached $400 million.
During the 1960s and early 1970s, Litton pursued rapid diversification into office machinery and consumer goods but encountered operational difficulties that led to leadership changes in 1973 when Fred O’Green succeeded Roy Ash as president to improve efficiency.
Throughout the 1980s, the company shifted back toward defense technology by divesting non-core businesses like publishing and medical products while acquiring firms such as Itek Corporation to bolster its technological capabilities.
In the early 1990s, Litton separated its commercial ventures from military operations; Western Atlas assumed responsibility for commercial activities including oilfield services.
The late 1990s featured further strategic acquisitions like TASC to enhance IT services aligned with defense contracts. Despite selling off some commercial divisions in 2000, Litton maintained robust financial health leading up to its acquisition by Northrop Grumman in 2001.
Divisions
Litton Industries comprised numerous significant divisions, including:
- LITEF GmbH located in Freiburg, Germany
- Litton Advanced Systems
- Litton Aero Products
- Litton Automated Marine Systems (AMS), which encompassed:
- Sperry Marine
- C.Plath
- Load Monitoring System for Spanish Product Carriers (an embedded IMP-16 based system providing real-time monitoring)
- Decca Radar (previously part of Racal)
- Decca Navigator, a historic VLF navigation technology
- Litton Bionetics based in Fort Detrick, Frederick, MD
- Litton Computer Services
- Litton Data Systems
- Litton Electron Devices (currently part of L3 Technologies; facilities in Torrance, CA and Williamsport, PA)
- Litton Electro-Optical Systems Incorporated
- Litton Encoder
- Litton Guidance and Control Systems
- Litton Potentiometer Division situated in Mount Vernon, NY
- Litton - Clifton Precision located in Clifton Heights, PA
- Litton Integrated Systems
- Litton Italia
- Litton Kester, specializing in solder manufacturing
- Litton Network Access Systems
- Litton PRC
- Litton Ship Systems, which included:
- Avondale Shipyard
- Ingalls Shipbuilding
- Litton Space Systems
- Litton Systems Canada (ceased display fabrication operations in 1998)
- Litton Westrex, notable for acquiring a Japanese solder company in 1999
- TELDIX
- Western Atlas, a joint enterprise with Dresser Industries incorporating the former Western Geophysical subsidiary; divested in 1994
These divisions illustrate the company's extensive range across aerospace, defense electronics, marine technology, and industrial manufacturing sectors, underpinning its diversified business strategy and international presence.
See also
Further reading
- Robert Sobel The Money Manias: The Eras of Great Speculation in America, 1770–1970 (1973; reissued 2000).
- Sobel, Robert. The Rise and Fall of the Conglomerate Kings (1984), Stein and Day, New York, pp. 47–76.
- Rodengen, Jeffrey L. The Legend of Litton Industries (2000), Write Stuff Enterprises, Fort Lauderdale, FL.