Northrop Names New President

Northrop Grumman Corp. said Thursday that it has named Ronald D. Sugar president. That puts the former Litton Industries executive in line to succeed Kent Kresa, the company’s longtime chairman and chief executive.

Sugar, 53, joined Los Angeles-based Northrop in April as a corporate vice president after the company acquired cross-town rival Litton, where he had been president and chief operating officer.

The appointment comes as Northrop, the nation’s fourth-largest defense contractor, braces for what is expected to be a broad and sustained buildup of U.S. military operations in the aftermath of last week’s terrorist attacks.

“In light of the tragic events of last week, it has become manifestly clear how important defense companies are to this nation,” Kresa said. “We want to be sure that we are in the best possible position to serve the interests of America, our employees, customers and shareholders.”

Although Sugar has been at Kresa’s side overseeing the integration of Litton into Northrop, he is expected to take a greater role in running the company. As part of the management move, the company said it has created a two-person office of the chairman, consisting of Kresa and Sugar.

“He and I will oversee all the activities of the company,” Sugar said. “The idea here is to add management strength.”

Northrop officials said the appointment is not part of a succession plan. But analysts said there is little doubt Sugar is being groomed to take over. Kresa, 63, is nearing the company’s mandatory retirement age of 65.

Kresa, who has been the company’s chairman and CEO since 1990, is “signaling that Sugar is the heir apparent,” said Paul H. Nisbet, an analyst with JSA Research Inc., an aerospace and defense research firm for institutional investors.

Sugar is outgoing and personable, a stark contrast to Kresa, who is reserved, analysts say.

After 20 years at TRW, where he rose to become president of the company’s aerospace and information systems business in Redondo Beach, Sugar left for Litton last year after he was passed up for the top job. Sugar was then tapped to succeed Michael R. Brown as chief executive of Litton.

“He’s done very well over the years, coming up the ladder at TRW, being hired at the top at Litton and then being moved up so quickly at Northrop,” Nisbet said.

A longtime Southern California resident, Sugar grew up in Hawthorne in the shadows of Northrop’s former aircraft plant.

Northrop shares rose $4.91 to $101.91 on the New York Stock Exchange.