LOS ANGELES , Jan. 14 /PRNewswire-FirstCall/ -- Northrop Grumman Corporation (NYSE: NOC) today announced a strategic realignment of several of its operating sectors to enhance the company's support to its customers, better utilize its capabilities and resources and drive operating improvements. The company stated that its two shipbuilding sectors, Newport News and Ship Systems, will be realigned into a single sector called Northrop Grumman Shipbuilding, effective Jan. 28, 2008 . In addition, the company is realigning the reporting of its missiles business from its Mission Systems sector to its Space Technology sector, effective July 1, 2008 . With this new reporting structure, Mission Systems will focus on the rapidly growing C4ISR business, and the missiles business will be an integrated element of the company's Aerospace business growth strategy.
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C. Michael Petters , currently corporate vice president and president of Newport News, has been elected corporate vice president and president of Northrop Grumman Shipbuilding. Philip A. Teel, currently corporate vice president and president of Ship Systems, has been elected corporate vice president and president of the company's Mission Systems sector effective April 1, 2008 . He will succeed Jerry B. Agee who is retiring in August 2008 , in keeping with the company's mandatory retirement policy for officers. Following April 1 , Agee will continue as a member of Northrop Grumman's Corporate Policy Council on special assignment to Ronald D. Sugar, Northrop Grumman's chairman and chief executive officer, until his retirement.
"This strategic realignment will enhance our world-class military shipbuilding enterprise and provide an integrated interface and full range of capabilities to our customers," Sugar said. "It will enable the company to more effectively utilize our shipbuilding assets and deploy its talented shipbuilders, processes, technologies, production facilities and planned capital investments to meet its customers' needs.
"With the significant progress in the recovery and regeneration of our Gulf Coast shipyards following Hurricane Katrina, the improvements resulting from our investments in our yards, and the continued strength of our nation's military shipbuilding program, this realignment positions the company for the future," Sugar continued.
" Mike Petters brings extensive shipbuilding expertise and broad management experience to his new role as we leverage our capabilities, resources and talent to enhance our shipbuilding powerhouse," Sugar said. " Phil Teel is a seasoned executive whose strong background in systems engineering and C4ISR makes him an excellent successor to Jerry Agee in leading Mission Systems. We look forward to a seamless transition and the continuation of Mission Systems' strong performance following Jerry's retirement. We thank Jerry for his excellent stewardship and integral role in establishing the sector's strategic position."
The realignment and transition process for the new Shipbuilding sector is expected to continue throughout 2008. Petters will assume day-to-day responsibility for the Gulf Coast operations of Shipbuilding and will operate from Pascagoula, Miss., during this transition phase. All current Gulf Coast and Newport News customer interfaces, as well as internal management and financial reporting structures, will remain in place until specific changes are communicated. The company is committed to ensuring a smooth transition with a focus on meeting all its program execution, safety and customer commitments. The company does not anticipate any facility closures or significant reductions in yard employment levels as a result of this realignment.