Northrop to Keep Unit Headquarters in Dallas

Northrop Grumman Corp., the fifth-largest U.S. defense contractor, canceled plans to move a division’s headquarters to Washington from Dallas, saying it would be too disruptive. Northrop had estimated the cost of relocating the Integrated Systems & Aerostructures headquarters at $70 million. The cost will be significantly less because the office’s 200 employees will be shifted instead to a new site in the Dallas area, the company said. The move was planned after Northrop agreed in June to sell the division’s commercial aircraft parts operation to Carlyle Group for $843 million. Century City-based Northrop’s shares fell 25 cents to close at $66.25 on the NYSE. Separately, the Defense Department said it’s awarding a contract to Northrop and Boeing Co. to study and design a new, unmanned fighter plane for the Navy. Each company will receive $2 million to analyze prospects for the plane over a 15 month-period.

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