Rockwell Space Division to Be Dismantled

Anticipating a reduced demand for military satellites, Rockwell International Corp. said Wednesday that it is dismantling its space and satellite electronics division here.

The company said it will divide the division’s work among three other company units in Southern California.

William Mellon, a Rockwell spokesman in El Segundo, said the reorganization will not affect the division’s 1,400 workers in Seal Beach. The division’s major program, the Global Positioning Systems navigation satellite, will be managed by the company’s Space Systems Division in Downey. Employees will remain in Seal Beach, where manufacturing will take place.

Mellon said the move is intended to reduce overhead costs and make the company more competitive as it bids for a shrinking number of satellite contracts.

The satellite and space division work will be reassigned to Downey, the company’s Strategic Defense Center in Seal Beach and its Defense Electronics unit in Anaheim. Defense Electronics will assume responsibility for military sensor products.

Mellon said the satellite operation in Seal Beach has produced 12 of 28 planned GPS satellites for the U.S. military under a $1.3-billion contract. With a downturn in military spending, however, the company expects fewer satellite contracts to be awarded in coming years.

Mellon said the Space Systems Division reported sales of $674 million for the first quarter ended Dec. 31, up from $670 million a year earlier.

El Segundo-based Rockwell posted earnings of $141.5 million on sales of $2.93 billion for the quarter ended Dec. 31.