NEWPORT NEWS, Va., Feb. 24, 2012 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries, Inc. (NYSE:HII) announced today that its Newport News Shipbuilding (NNS) division has received a $383 million cost-plus-fixed-fee, level-of-effort contract option to continue planning work for the refueling complex overhaul (RCOH) of the nuclear-powered aircraft carrier USS Abraham Lincoln (CVN 72). If all contract options are exercised, the full value of the contract could reach $678 million.
The contract option is for work performed from Feb. 27, 2012, until Feb. 18, 2013, and includes planning, design, documentation, engineering, material procurement, pre-fabrication and shipboard inspections.
"RCOH work represents 35 percent of all maintenance and modernization that is performed on Nimitz-class aircraft carriers during their 50-year service life," said Ken Mahler, NNS' vice president of Navy Programs. "The complexity of this effort requires significant planning and preparation so that we achieve our commitment to successfully re-deliver these ships to our Navy customer in a timely and cost-effective manner."
Christened in 1988 and delivered to the U.S. Navy in 1989, USS Abraham Lincoln is the fifth Nimitz-class carrier built by Newport News Shipbuilding. It will also be the fifth ship of the class to undergo this major life-cycle milestone. More than 1,000 employees will support the planning effort.
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: