Northrop Grumman Corporation (NYSE:NOC) Made Some New Developments

630

By Thomas Copeland on December 29, 2014 Company

The drone helicopter of Northrop Grumman Corporation (NYSE:NOC) was introduced almost a decade back with the name of RQ-8A. The helicopter has only seen improvements and growth since then. The MQ-8B of the company’s drone helicopter has flown over 5,300 territories with total flight hours of 14,000.

The helicopter has served many useful purposes. Not only has it discovered and prohibited drugs on the U.S. Navy ships, but it has also tracked down some of the pirate ships that were operating in the Gulf of Aden. The aircraft has not only tested hundreds of rockets, but it has also monitored the activities of militants in the country of Afghanistan.

The favorite helicopter of U.S. navy witnessed two improvements in the first week of December. The jet joined the Coast Guard services in order to monitor the security threats. Later on, an even latest model of the aircraft was utilized by the Navy to launch missiles.

Northrop Grumman Corporation’s (NYSE:NOC) vice president for medium tactical systems, George Vardoulakis, recently announced in the press that the tests on its latest MQ-8C will continue till the second half of the year 2015. The aircraft will hopefully be ready for operations by the end of the year 2015.

According to the industry experts, both the developments are so significant that it is hard to pin point one and say that it will be the key for future prospects of the company. The use of Fire Scouts on Coast Guards will open up a whole new segment for Northrop Grumman Corporation (NYSE:NOC). As for MQ-8B, the U.S. Navy has already given orders for 167 units to be delivered for a total of $5.6 billion. Northrop Grumman Corporation’s (NYSE:NOC) total revenues for the recent year were recorded to be at $25 billion.

The improvements that are made in the MQ-8C aircraft will enable the jet to carry more surveillance equipments, 3 times more to be precise. According to the rumors, the U.S. Navy is planning on ordering 120 units of Fire Scouts together with a few dozen units of MQ-8C. If the rumor turns out to be true, the Fire Scout will become the most demanded drone helicopter of the decade.

It is important to mention here that Northrop Grumman Corporation (NYSE:NOC) is not the only company that produces drone helicopters. Other defense companies have also built their own drone helicopters. Lockheed Martin (NYSE:LMT) built K-MAX.; however, the helicopter has retired this year. Boeing (NYSE:BA) built an A160 in 2012 whereas United Technologies’ (NYSR: UTX) Black Hawk aircraft is still under construction.

The drone helicopter market, however, is still dominated by Northrop Grumman Corporation (NYSE:NOC). Coming to the stock prices of Northrop, the company, during the last trading day of December 26, 2014, started its stocks at a price of $151.93 and closed at a price of $151.55, after hitting the highest price of $152.59. The total market capitalization of Northrop Grumman Corporation (NYSE:NOC) has recorded to be at $30.6 billion.