NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc. (NASDAQ/NMS-AVDL) today reported income from continuing operations of $12.1 million, or $0.83 per share, for the third quarter of 1995 versus $6.3 million, or $0.44 per share, a year ago. The current quarter s income from continuing operations includes a tax benefit of $8.0 million, or $0.55 per share, recorded principally to recognize, for financial reporting purposes, the benefit of certain net operating loss carry forwards available to offset estimated future earnings. The prior year period included a net gain of approximately $3.5 million, or $0.24 per share, related to revisions of estimated contract profits on several shipbuilding contracts which were previously completed. Revenues for the three months ended September 30, 1995 totaled $148.8 million compared with $125.5 million in the year-earlier period. For the first nine months of 1995, Avondale reported income from continuing operations of $23.6 million, or $1.63 per share, compared with $10.7 million, or $0.74 per share, from continuing operations a year ago. The tax benefit for the current nine month period is $13.0 million, or $0.90 per share. Revenues for the first nine months increased to $435.1 million compared with $345.3 million in 1994. The tax benefit has been recorded in accordance with ongoing evaluations of the Company s ability to utilize net operating loss carry forwards. The recognition of any additional available tax benefit (approximately $9.5 million) will depend on future assessments of estimated taxable income. In the year-earlier periods the Company decided to discontinue a subsidiary formed in 1990 to pursue service contracts with governments and commercial operations. The results for the third quarter and gains through the nine months further underscore the progress we have realized in restoring a sound, profitable base of operations for Avondale, said Albert L. Bossier, Jr., Chairman and Chief Executive Officer. The performance for the year-to-date clearly signals that 1995 as a whole will mark a year of meaningful growth. Operating highlights for the quarter include the delivery of the second of four Landing Ship Dock - Cargo Variant (LSD-CV) vessels and the first of four MHC-51 Class Minehunters. We also completed the enclosed steel processing facility which we are confident will enhance production efficiency and reduce costs. This center, which exceeds 500,000 square feet in size, is now an integral component of our shipyard and will eliminate many weather-related factors which have previously affected the flow of production. Bossier noted, We are continuing an aggressive program to maintain the positive momentum in the Company s business. One of the most significant Naval shipbuilding programs now being planned involves a new class of amphibious transport dock vessels. During the third quarter, we announced the formation of an alliance with Bath Iron Works Corporation and Hughes Aircraft to pursue the design and construction of these ships, designated the LPD-17 class. Under the terms of the agreement, Avondale would be the prime contractor of this consortium which we believe offers the Navy the most competitive team for the construction of these vessels. An important stage in funding this multi-billion dollar program is currently pending congressional approval. We are optimistic about the potential for this work which would serve as a major long-term activity for Avondale s shipyard. We were also pleased with the contract signed during the third quarter to construct seven product carriers for Primorsk Shipping Group, the second-largest Russian tanker company. Inclusion of this business in our backlog is subject to certain conditions including the customer s receipt of Title XI financing guarantee. Delivery of all seven vessels is intended to be completed by the end of 1998. 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.