Northrop Grumman Corporation : Northrop Grumman Adds $2 Billion To Share Buyback Program
09/19/2012| 04:31pm US/Eastern
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By Kristin Jones
Northrop Grumman Corp. (NOC) has authorized the buyback of an additional $2 billion in stock as the defense contractor seeks to boost shareholder returns.
The authorization is in addition to the $1.1 billion remaining in its share repurchase program. The increase "demonstrates our continuing commitment to a cash deployment strategy that includes distribution of cash to shareholders through share repurchases and dividends," said Chief Executive Wes Bush.
Northrop Grumman, which builds pilotless aircraft such as the Global Hawk and is a provider of cybersecurity and logistics services, has been streamlining operations for the past several years to cope with leaner defense budgets. The winding down of the wars in Iraq and Afghanistan and calls to cut spending on Capitol Hill have both pushed down defense spending, weakening the sector.
The company in July reported that its second-quarter profit shrank 7.7% as three of the defense contractor's four major segments posted softer sales.
Shares rose 0.16% in after-hours trading, to $67.01. Through the close, the stock was up 14% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com
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