NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc.(NASDAQ/NMS-AVDL) today reported net income of $30.8 million, or $2.13 per share, for 1996 versus $28.2 million, or $1.95 per share in 1995. Net sales for 1996 totaled $624.9 million, up from $576.3 million in the prior year. Net income for the 1996 and 1995 years included income tax benefits of $9 million, or $.62 per share and $13 million, or $.90 per share, respectively. These tax benefits were recorded principally to recognize, for financial reporting purposes, the benefit of certain net operating loss carryforwards. As of December 31, 1996, substantially all of the Company's net operating loss carryforwards have been recognized for financial reporting purposes. For the fourth quarter of 1996, Avondale reported net income of $6.2 million, or $0.43 per share, compared with $4.6 million, or $0.32 per share in the year-earlier period. Net sales for the fourth quarter of 1996 increased to $167.5 million compared with $141.2 million in the year-earlier period. "The report of record financial results for 1996 caps a milestone year for Avondale," said Albert L. Bossier, Chairman and Chief Executive Officer. "Our success in generating higher operating efficiencies and increased earnings was coupled with the award of a $1.5 billion contract including options to Avondale in December 1996 as the prime contractor for the initial ship in the Navy's major LPD-17 shipbuilding program. Both the Company's continued growth and our leadership in this important military initiative relate directly to the actions we have taken over the past several years to enhance our fundamental competitive position. The capital we have invested to modernize our shipyard and the productivity programs we have implemented throughout the organization have led to these tangible results. We remain focused on extending this positive momentum and are actively seeking to participate in additional Navy programs as well as in commercial shipbuilding projects." Bossier noted, "Our work during 1996 included the completion of two multi-ship programs that have been an important component of our shipyard activity in recent years. These included delivering the third of three LSD-CV troop and cargo vessels as well as a T-AO oil tanker that represents the 16th such vessel built by Avondale since the program's inception in 1982. We also completed the third of four MHC-51 coastal minehunters and delivered the final minehunter on January 3, 1997. The substantial completion of these contracts has matched the planned progression in the Strategic Sealift program for the Navy which we began in 1993. The award of a contract for an additional Sealift vessel in November 1996 raised our involvement in this series to five ships. The initial Sealift vessel is scheduled for delivery early in 1998. "Our funded backlog, including the initial LPD-17 ship, now totals $1.8 billion - a record for Avondale and our backlog including unexercised options for the Navy approaches $2.5 billion. The start of our work on the LPD-17 program will mark an important step forward for the company. We are committed to making considerable investments in new technologies that will become integral to the business of shipbuilding in the future. Our balance sheet provides strong support to this commitment, and we are excited about the opportunities that will exist to capitalize on this expertise." Avondale Industries, Inc., headquartered in metro New Orleans designs, builds and overhauls both military and commercial vessels.