Northrop Grumman Board Authorizes $3 Billion Share-Buyback Plan

By Tess Stynes 

Northrop Grumman Corp. said its board authorized the repurchase of an additional $3 billion of the defense contractor's stock, as the company aims to buy back a quarter of its shares by the end of next year.

Northrop, the world's fifth-largest defense contractor by sales, in October reported that it had increased its stock buybacks during the third quarter to $753 million as it continued with the effort--the most aggressive repurchase plan in the sector.

A number of defense companies have responded to U.S. budget pressures by cutting costs to increase margins and buying large amounts of their stock.

Also in October, Lockheed Martin Corp. said it plans to boost stock buybacks and keep capital spending flat as the world's largest defense contractor by sales forecast that the Pentagon budget wouldn't hit bottom until at least 2015.

On Thursday, L-3 Communications Holdings Inc. said its board authorized the repurchase of an additional $1.5 billion of the defense contractor's shares over roughly the next 2 1/2 years.

Write to Tess Stynes at [e-mail]

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