NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc. (NASDAQ/NMS-AVDL) today reported a significant gain in income from continuing operations for the second quarter of 1995 versus a year ago. Income from continuing operations for the latest quarter totaled $8.5 million, or $0.59 per share, compared with $2.5 million, or $0.17 per share for the second quarter of 1994. The current quarter s results include a net income tax benefit of $3.1 million, or $0.21 per share, principally a result of recognizing, for financial reporting purposes, the benefit of certain net operating loss carry forwards available to offset estimated future earnings. Revenues for the three months ended June 30, 1995 totaled $152.8 million compared with $118.4 million in the year-earlier period. For the first six months of 1995, Avondale reported income from continuing operations of $11.5 million, or $0.80 per share, up from $4.4 million, or $.30 per share, a year ago. Revenues for the first half of 1995 totaled $286.4 million versus $219.8 million in the year­earlier period. Avondale s performance for the second quarter of 1995 compares well not only with the year-earlier results but also with the first period of this year, said Albert L. Bossier, Jr., Chairman and Chief Executive Officer. He noted that in the first quarter of 1995, the Company reported net income of $3.0 million, or $0.21 per share, on revenues of $133.6 million. We are particularly pleased with this trend because it signals meaningful progress toward our goal of regaining a long-term record of profitable growth. The Company s significant improvement represents success in building the contract backlog, including options, to approximately $2.0 billion as well as actions taken to improve our productivity. We are focused on enhancing Avondale s leadership in the shipbuilding industry. A major step in this ongoing initiative is the $20 million being invested to modernize our steel fabrication process. Financing for this project was made possible by the Maritime Administration s Title XI program which provides a government financing guarantee for projects of this type. We are nearing completion of the centerpiece of this effort, an enclosed steel processing facility which should be fully operational during the third quarter of 1995. One of the first projects which will utilize the new center is a series of river hopper barges which the Company was awarded last month. We expect to deliver the majority of these barges during the fourth quarter of 1995 and are confident that the new facility will help us toward our strategic goals of meeting higher quality standards while reducing costs and shortening production schedules. Bossier noted, During the second quarter, a T-AO Oiler built by Avondale for the U.S. Navy successfully completed its sea trials and was delivered ahead of schedule. This is the first double-hulled oiler built in the United States. We have already capitalized on the experience gained from this project, which includes two more vessels, by the award to construct forebodies for four commercial product tankers. Financing for these vessels was completed in May through the Maritime Administration s Title XI program and completion of our work on the ships is scheduled for 1996 and 1997. We are working actively to add further to our backlog of both Naval and commercial projects. The Company s improved financial results thus far this year have added meaningful impetus to these efforts and reinforced the soundness of our overall strategy. Avondale Industries, Inc., headquartered in metro New Orleans, is one of the nation's leading marine fabricators. In addition to its shipbuilding operations, the Company specializes in boat construction and is a major repair contractor for commercial and Navy ships. It is also involved in the modular construction of plants and components for a variety of land-based industries.