Photo Release -- Ingalls Shipbuilding Wins U.S Navy Contract to Build Five DDG
PASCAGOULA, Miss., June 3, 2013 (GLOBE NEWSWIRE) -- Huntington Ingalls
Industries' (NYSE:HII) Ingalls Shipbuilding division has been awarded a
fixed-price incentive, multiyear contract for construction of five Arleigh
Burke-class destroyers (DDG 51s) for the U.S. Navy. The contract, announced
today, has a total value of $3.33 billion and includes options for engineering
change proposals, design budgeting requirements and post-delivery
availabilities, which, if exercised, would bring the cumulative value of the
contract to approximately $3.39 billion.
The guided-missile destroyer USS
William P. Lawrence (DDG 110), built by
Ingalls Shipbuilding and commissioned
in 2011, is currently deployed in
support of Operation Enduring Freedom.
John Finn (DDG 113) is under
construction in Pascagoula, Miss., and
work on Ralph Johnson (DDG 114) will
begin this summer. U.S. Navy photo
A photo accompanying this release is available at
"Our shipbuilders have a strong legacy of building DDG 51s, a class of ships
that for decades has proven itself to be the workhorse of the Navy's fleet,"
said DDG 51 Program Manager George Nungesser. "This contract award and,
importantly, the Navy's structuring of the program increases our momentum in
realizing efficiencies generated from true serial production. We are committed
to getting it right and doing it better every day, and we appreciate this
opportunity to continue building the world's finest surface combatants."
The multi-year procurement allows Ingalls to build ships more efficiently by
buying bulk material and moving the skilled workforce from ship to ship. It
also ensures Ingalls will be building DDGs over the next decade.
Ingalls has delivered 28 DDG 51 destroyers to the Navy and currently has two
more under construction. Ingalls started construction on John Finn (DDG 113)
in September 2012 and will begin construction on Ralph Johnson (DDG 114) this
The company's 28^th destroyer, William P. Lawrence (DDG 110), was commissioned
on June 4, 2011, in Mobile, Ala. The ship was the most complete DDG at the
time of its sea trials in the history of the program at Ingalls. Lessons
learned from previous DDGs allowed Ingalls to deliver William P. Lawrence in
less time and with fewer man-hours compared to several of the ships that
immediately preceded it.
This highly capable, multi-mission ship can conduct a variety of operations,
from peacetime presence and crisis management to sea control and power
projection, all in support of the United States' military strategy. DDGs are
capable of simultaneously fighting air, surface and subsurface battles. The
ship contains myriad offensive and defensive weapons designed to support
maritime defense needs well into the 21st century.
Huntington Ingalls Industries (HII) designs, builds and maintains nuclear and
non-nuclear ships for the U.S. Navy and Coast Guard and provides after-market
services for military ships around the globe. For more than a century, HII has
built more ships in more ship classes than any other U.S. naval shipbuilder at
its Newport News Shipbuilding and Ingalls Shipbuilding divisions. Employing
about 37,000 in Virginia, Mississippi, Louisiana and California, HII also
provides a wide variety of products and services to the commercial energy
industry and other government customers, including the Department of Energy.
For more information about HII, visit:
*HII on the web: www.huntingtoningalls.com
*HII on Facebook: www.facebook.com/HuntingtonIngallsIndustries
*HII on Twitter: twitter.com/hiindustries
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constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties that could cause our actual results to differ
materially from those expressed in these statements. Factors that may cause
such differences include: changes in government and customer priorities and
requirements (including government budgetary constraints, shifts in defense
spending, and changes in customer short-range and long-range plans); our
ability to obtain new contracts, estimate our costs and perform effectively;
risks related to our spin-off from Northrop Grumman (including our increased
costs and leverage); our ability to realize the expected benefits from
consolidation of our Gulf Coast facilities; natural disasters; adverse
economic conditions in the United States and globally; and other risk factors
discussed in our filings with the U.S. Securities and Exchange Commission.
There may be other risks and uncertainties that we are unable to predict at
this time or that we currently do not expect to have a material adverse effect
on our business, and we undertake no obligations to update any forward-looking
CONTACT: Bill Glenn
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