Photo Release -- HII Awarded $296 Million Construction Preparation Contract Modification For John F. Kennedy (CVN 79)

NEWPORT NEWS, Va., Sept. 27, 2012 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) has received a $296 million contract modification, under a previously awarded contract, for continuation of long-lead-time material procurement for and advance construction of the nuclear-powered aircraft carrier John F. Kennedy (CVN 79). The company's Newport News Shipbuilding (NNS) division is the prime contractor.
John F. Kennedy (CVN 79)
The aircraft carrier John F. Kennedy (CVN 79) is the second ship in the Gerald R. Ford class, the Navy's newest class of nuclear aircraft carriers. The ship's first steel was cut in December 2010, and delivery to the Navy is scheduled no later than 2022. Photo illustration

A photo accompanying this release is available at http://media.globenewswire.com/hii/mediagallery.html?pkgid=14937

This award enables NNS to continue preparations for the construction of John F. Kennedy, including engineering and planning efforts along with additional advance material procurement and complex component manufacturing. Long-lead-time materials include advanced weapons elevators, pumps, propellers, steel plate, piping and fittings.

John F. Kennedy is the second ship in the Gerald R. Ford class, the Navy's newest class of nuclear aircraft carriers. The Ford class incorporates many improvements in capability and is designed to reduce total ownership cost over that of the Nimitz class. The ship's first steel was cut in December 2010, and delivery to the Navy is scheduled no later than 2022.

"Advance construction and procurement enables us to transition smoothly from Ford into the bulk of Kennedy's construction starting in 2013, efficiently utilizing our labor and facility resources," said Mike Shawcross, NNS' vice president, John F. Kennedy construction. "We are working hard with the Navy to make the entire class more affordable, and we are taking full advantage of the lessons we are learning while building Ford and applying them to Kennedy. We are always looking at ways to improve carrier construction at the shipyard — from changes in how work flows through the yard to engaging our suppliers for their ideas that could improve efficiency."

Cost reduction measures include maximizing work in earlier stages of construction where it can be done more efficiently, re-sequencing unit construction to build similar units repetitively, decreasing the number of lifts required to erect the ship, increasing overall ship completion levels at major key events, and improvements to processes and tools that increase productivity.

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:

The Huntington Ingalls Industries, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=9418

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.
CONTACT: Christie Miller         Christine.Miller@hii-co.com         (757) 380-3581

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