NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc.(NASDAQ/NMS-AVDL) today reported results for the second quarter of 1996 that included a 54% increase in income before income taxes to $8.4 million versus $5.4 million a year ago. Net sales for the three months ended June 30, 1996 totaled $152.6 million versus $152.8 million in the year-earlier period. Net income for the second quarter totaled $14.3 million, or $0.99 per share, compared with $8.5 million, or $0.59 per share, in the year-earlier period. Net income for the current quarter includes a deferred income tax benefit of $9.0 million, or $0.62 per share, compared with a deferred income tax benefit of $5.0 million, or $0.35 per share, in the year-earlier period. Such benefits recognized for financial reporting purposes the availability of net operating loss carry forwards to offset estimated future earnings. At June 30, 1996, the benefits related to substantially all of the Company's net operating loss carry forwards have been recognized for financial reporting purposes. For the first six months of 1996, Avondale reported net sales of $309.1 million, up from $286.4 million in the year-earlier period. Net income for the first half of 1996 totaled $19.0 million, or $1.32 per share, versus $11.5 million, or $0.80 per share, a year ago. "The increase in income before income taxes for the second quarter marks an extension of Avondale's strong performance from the first three months of this year," commented Albert L. Bossier, Chairman and Chief Executive Officer. "We are gratified by this bottom-line improvement which directly reflects Avondale's competitive leadership. A key strategic goal remains firmly establishing the Company as one of the most efficient shipyards in the world. Maintaining a sound level of operating profitability is an essential attribute in this initiative, and we are continuing to emphasize the importance of containing costs and raising productivity to ensure ongoing progress." Bossier noted, "Another hallmark of Avondale's growth is our increasing involvement in the construction of ships with more complex systems and engineering requirements. On June 28, the Avondale LPD-17 alliance, consisting primarily of Avondale, Bath Iron Works, Hughes Aircraft Company and Intergraph Corporation, submitted a proposal for the design and construction of the first three LPD-17 class amphibious assault ships. The Navy is moving decisively and quickly on this program because the new vessels are needed over the next 5 - 10 years to replace a sizable number of other amphibious ships which are nearing the end of their practical service. We believe our alliance has presented the Navy with a highly competitive proposal, supported by the proven resources and expertise to complete the project as scheduled. The announcement of the award for the first ship in this major new program is expected later this year. "Our backlog, including additional ships for which the Navy holds options, is approximately $1.7 billion. During the first half of 1996, we delivered a double-hulled T-AO (Oiler) representing the last of 16 T-AOs and a third LSD-CV (Landing Ship Dock) as scheduled to the Navy. Deliveries over the remainder of 1996 are still expected to include two of the four commercial double-hulled forebodies we are retrofitting to product carriers and two MHC-51 Minehunters. Our financial position remains very strong, and we are optimistic about the prospects for further operating gains over the balance of this year." Avondale Industries, Inc., headquartered in metro New Orleans designs, builds and overhauls both military and commercial vessels.