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.
"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 summer.
The company's 28th 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.
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: