From California to Virginia, a Corporate HQ Move

By April 28, 2010Economy, Taxation

News release, “Northrop Grumman Selects Virginia for New Corporate Office“:

LOS ANGELES – April 26, 2010 – Northrop Grumman Corporation (NYSE:NOC), announced that it will locate its new corporate office in Virginia, concluding a search that also included the state of Maryland and the District of Columbia.

“We are pleased to have identified Virginia as the home for our new corporate office. Virginia, Maryland and the District put forward compelling, competitive offers. Our final decision was driven largely by facility considerations, proximity to our customers, and overall economics,” said Wes Bush, chief executive officer and president. “We are very appreciative for the tremendous assistance we received from Governor O’Malley and the State of Maryland, Mayor Fenty and the District of Columbia, and Governor McDonnell and the Commonwealth of Virginia as well many local counties and municipalities.”

Northrop Grumman is currently conducting negotiations with several building owners in the Falls Church/Arlington area, with a specific building selection to be announced soon. The company expects to initiate operations in the new corporate office in summer of 2011 with approximately 300 people.

At the risk of being redundant, welcome to the area! As the next line of the news release notes, “Northrop Grumman currently employs approximately 40,000 people in Maryland, Virginia and Washington, D.C. and is the largest industrial employer in both states.”

News coverage tended to highlight Virginia Gov. Bob McDonnell’s role in the recruitment of the corporate headquarters, as well as the incentive packages offered by the states. Congratulations to the governor, too, but the comparatively friendly business and investment environments in Virginia versus Maryland or the District probably played a more important role. In CNBC’s “Top States for Business 2009,” Virginia ranked No. 1. Maryland ranked 27.

Big week for Northrop Grumman. Today the company announced first quarter earnings, which increased to $462 million, or $1.51 per diluted share, from $366 million, or $1.10 per diluted share, in the first quarter of 2009.

And then there’s this news, good for the national defense, “Northrop Grumman Delivers Mine Detection Pods Ahead of Schedule.” Photo here.

Leave a Reply