Northrop in Talks to Sell Fuselage Business

Northrop Grumman Corp., which makes the fuselage for Boeing 747 jetliners, said it’s in talks to sell the fuselage business now that jetliner sales appear headed for period of decline. Northrop hired Salomon Smith Barney Inc. to help with the sale. The Wall Street Journal reported that Northrop is talking with Carlyle Group, a closely held, Washington-based venture-capital and buyout company. Carlyle Group didn’t return calls seeking comment. The business had sales of $1.44 billion last year. Los Angeles-based Northrop has blamed slower sales in the so-called aerostructures division in profit warnings it issued in the last year. Boeing reduced output of 747s in part because of a recession in Asia that began in mid-1997, which contributed to a decrease in aircraft sales. “Some people don’t like the commercial-aviation side” of Northrop, said Greg Tuorto of Tocqueville Asset Management in New York, which owns Northrop shares. “It holds people back from investing in Northrop.” Shares rose $4.38 to close at $63.81 on the New York Stock Exchange.