NEWPORT NEWS, Va., May 6, 2013 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) announced today that its Newport News Shipbuilding (NNS) division has received an increase of $60.8 million to a previously awarded construction preparation contract for purchase of materials in support of aircraft carrier John F. Kennedy (CVN 79) construction.
The funds awarded to NNS will be used to purchase long-lead-time materials such as air conditioning systems, controllers and pumps. NNS has performed work on CVN 79 under a construction preparation contract that allows for engineering, planning, long-lead-time material procurement and initial manufacturing to begin before the full construction contract is awarded to improve efficiency. The construction contract is anticipated later this year.
"This additional funding helps us keep our momentum in meeting our efficiency objectives," said Mike Shawcross, NNS vice president, CVN 79 construction. "We have been working with our suppliers to come up with more affordable ways to procure material for the Kennedy, and this contract modification is an example of implementing some of these initiatives."
John F. Kennedy (CVN 79) will continue the Ford-class legacy of highly capable U.S. Navy nuclear-powered aircraft carrier ship platforms. Enhancements incorporated into the Ford-class design include flight deck changes, improved weapons handling systems and a redesigned island, all resulting in increased aircraft sortie generation rates. It will also include new nuclear power plants, increased electrical power generation capacity, allowance for future technologies and reduced workload for the sailors, translating to a smaller crew size and reduced operating costs for the Navy.
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 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. For more information, visit: