PASCAGOULA, Miss., Sept. 17, 2012 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) announced today that its Ingalls Shipbuilding division has been awarded an $83.3 million cost-plus-award-fee contract from the U.S. Navy for continued life-cycle engineering, modernization and support services on the U.S. Navy's fleet of USS Ticonderoga-class (CG 47) Aegis guided missile cruisers. The contract is the first of five options which, if exercised, would place the total value of the contract at $468.2 million.
"This award builds on the U.S. Navy's confidence in the versatility we have as a shipbuilding company in not only building quality warships, but also in providing life-cycle and modernization support," said Bob Merchent, Ingalls' vice president, surface combatants and U.S. Coast Guard programs. "This contract validates Ingalls Shipbuilding's long-standing reputation for excellence in fleet sustainment and in building CG 47-class ships. Obviously it takes the efficiency and skill of our shipbuilders to accomplish these efforts, and I'm confident they will demonstrate quality performance on this important project for these surface combatants."
Ingalls, as lead shipbuilder for the Aegis cruiser program, delivered 19 of the 27 Ticonderoga-class ships between 1982 and 1994. The CG 47-class cruisers represent a significant portion of the Navy's surface combatants, and the modernization effort will increase their service life and war-fighting capability for another 20 years. Ingalls will perform the work in Pascagoula and provide waterfront support in U.S. Navy ports in Norfolk, Va.; Mayport, Fla.; San Diego; Pearl Harbor, Hawaii, and Yokosuka, Japan.
Statements in this release, other than statements of historical fact, 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 statements.
About Huntington Ingalls
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. Employing more than 37,000 in Virginia, Mississippi, Louisiana and California, its primary business divisions are Newport News Shipbuilding and Ingalls Shipbuilding. For more information, visit:
- HII on the web: www.huntingtoningalls.com
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