Loral Corporation
|
Native name
|
Loral Electronics Corporation |
|---|---|
| Industry | Defense contracting |
| Founded | 1948 in New York, New York |
| Founders | William Lorenz and Leon Alpert |
| Defunct | 1996 |
|
Area served
|
USA |
| Products | Radar, sonar and infrared detection equipment; satellite communications; |
Loral Corporation was a defense contractor founded in 1948 in New York by William Lorenz and Leon Alpert as Loral Electronics Corporation. The company's name was taken from the first letters of each founder's surname.
Loral Corporation originally worked on developing radar and sonar detection methods for the U.S. Navy. In 1959 it went public with an initial offering of 250,000 shares at $12 each. Part of the proceeds from this offering were used to build a new headquarters on its 10-acre (40,000 m2) site at 825 Bronx River Avenue, in the Soundview section of The Bronx, New York.
In 1959 it began to diversify, buying several smaller companies, through which it won more military contracts. Some purchased companies included Willor Manufacturing Corp., American Beryllium Co., Inc., of Sarasota, Florida, Arco Electronics, and several plastics companies.
In 1961, it formed a division for developing communications, telemetry, and space navigation systems for satellites.
As its expansion and buying other companies increased, it borrowed $15 million from the Massachusetts Mutual Life Insurance Company in 1965.
In the late 1960s, it was awarded many military contracts, including a $3.9 million U.S. Navy contract for Doppler navigation radar in 1965, a $14 million contract from General Dynamics for advanced electronics for the U.S. Air Force F-111 airplane in 1969, and a $3.9 million contract for airborne countermeasures for the Phantom RF-4C reconnaissance plane. By the late 1960s, Loral specialized in radar receivers, which identified signatures of enemy radar systems on missiles and anti-aircraft guns.
However, by the late 1960s, Loral's corporate purchases were causing problems for the company. By 1971 it had lost $3 million and was sometimes unable to meet its loan payments. Many acquisitions were not profitable and also not in Loral's primary business. The founders, Lorenz and Alpert, were prepared to sell half their interest in the company.
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