Dive Brief:

• Defense industry giant Northrop Grumman said Tuesday that its space systems CFO, Kenneth B. Crews, is preparing to take charge of the company’s overall finance department.
• Effective Oct. 1, Crews will replace current Northrop Grumman CFO Dave Keffer, who is planning to retire early next year to spend more time with family, according to a press release. Mark Caylor, president of Northrop Grumman’s mission systems unit, is also retiring and will be succeeded by Roshan Roeder, head of the defense systems division, the Falls Church, Virginia-based company said.
• “These are the right leaders to execute our strategy, keep a laser focus on performance and continue to create value for our customers and shareholders,” Northrop Grumman CEO Kathy Warden said in the release.

Dive Insight:

The leadership changes comes on the heels of some volatility in Northrop Grumman’s financial performance.

In January, the defense contractor reported a net earnings loss of $535 million in the fourth quarter compared with $2.1 billion in the year-earlier period. This came as it took a $1.17 billion charge related to the U.S. Air Force's next-generation B-21 stealth bomber. Overall sales rose 6% to $10.6 billion.

In the first quarter, the company’s performance improved, with net earnings of $944 million, a 12% increase year over year. Net sales increased by 9% to $10.1 billion, according to results released last month.

“[A]cross the business, you're seeing the results of our heavy focus on program performance and cost efficiency,” Keffer told investors at the time. “It's one of the three drivers that we anticipate for margin expansion, along with business mix enhancement, and the gradual decline of macroeconomic pressures.”

To ensure a smooth financial leadership transition, Keffer will work directly with Crews, who will become vice president of corporate finance as of July 1, according to the Tuesday release.

Prior to his current role in space systems, Crews was CFO for mission systems, the release said. He has worked in multiple sectors at Northrop Grumman since joining the company in 2004, including as director of financial planning and analysis in the corporate headquarters, it said.