After nearly a year full of struggles and mulling alternatives, the Defense contractor Group Northrop Grumman Corp. has said that the board has approved the expected spin-off of its ship-making business to the stockholders.

The stockholders of the Northrop Grumman shall receive a share against every six shares. They shall receive a share of Huntington Ingalls Industries for every six shares they posses of the Northrop group till the 30th of March.

The firm has slumped down in its functioning as well as profits, due to a slowdown in Navy shipbuilding projects. Their share in the market was also made weaker due to tough competition from rival group General Dynamics.

The other reason for the shrinking market share of this firm is the cost cutting done by the Pentagon. Effective measures need to be taken if the firm needs to reach its position again. It is sure going to be a tough job with all this competition as well as negative factors around. This makes it all the more a challenge for the firm to regain its lost poise.