Northrop Grumman (NYSE:NOC) | Materials & Supply

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Key Raw Materials and Components + Supply

Northrop Grumman relies on other companies to provide raw materials and major components for its products and relies on subcontractors to produce hardware elements and sub-assemblies and perform some of the services that the company provides to customers. While the company has generally been able to obtain key raw materials required in its production processes in a timely manner, a significant delay in supply deliveries could have a material adverse effect on the company's consolidated financial position, results of operations, or cash flows.

The most important raw materials required for Northrop Grumman's aerospace products are aluminum, titanium, and composite materials (including carbon and boron fibers; and resins).

To manufacture and assemble aircraft, Northrop Grumman depends on turboshaft and turbofan engines from Rolls-Royce, as well as metal and composite aerostructures and avionics from multiple suppliers.

Also, Northrop Grumman depends on the availability of energy sources, such as electricity, at affordable prices.

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