NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc.(NASDAQ/NMS-AVDL) today reported results for the third quarter of 1996 that included a 39% improvement in income before income taxes to $8.8 million versus $6.4 million a year ago. Net sales for the three months ended September 30, 1996 totaled $148.4 million versus $148.8 million in the year-earlier period. Net income for the third quarter totaled $5.6 million, or $0.39 per share, compared with $12.1 million, or $0.83 per share, in the year-earlier period. Net income for the third quarter a year ago included an income 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. No similar benefit was recognized in the third quarter of 1996 because substantially all of the Company's net operating loss carry forwards have been previously recognized for financial reporting purposes. For the first nine months of 1996, Avondale reported net sales of $457.5 million, up from $435.1 million in the year-earlier period. Net income for the first nine months totaled $24.6 million, or $1.70 per share, versus $23.6 million, or $1.63 per share, a year ago. Net income for the 1996 and 1995 periods included income tax benefits of $9 million, or $0.62 per share and $13 million, or $0.90 per share, respectively. Albert L. Bossier, Jr., Chairman and Chief Executive Officer said, "Our 1996 results reflect our continuing focus on capitalizing on the competitive leadership we have established in the shipbuilding industry through the capital invested and programs implemented to raise productivity. Sustaining these results is directly dependent on our ongoing success in containing expenses and working on a day-to-day basis to achieve higher efficiency." "We are also continuing to work actively to support our proposal to participate in the Navy's LPD-17 program. During the third quarter, we had several routine communications with the Navy regarding specific points concerning the proposal which we submitted in June through our alliance with Bath Iron Works, Hughes Aircraft Company and Intergraph Corporation. We understand that the review process for this major new program has delayed a final decision somewhat, but we still expect the announcement of the award for the first vessel to be made by the close of 1996. "Including additional ships for which the Navy hold options, our backlog currently approximates $1.5 billion. We have the benefit of a strong balance sheet and are optimistic about the opportunities for securing additional military and commercial-related business." Avondale Industries, Inc., headquartered in metro New Orleans designs, builds and overhauls both military and commercial vessels.