NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc.(NASDAQ/NMS-AVDL) today reported results for the second quarter of 1997 that included a 24% increase in income before income taxes to $10.4 million versus $8.4 million a year ago. Operating results for the first six months of 1997 included a 27% increase in income before income taxes to $20.1 million versus $15.8 million a year ago. Net income for the second quarter totaled $6.4 million, or $0.44 per share. This compares with net income of $14.3 million, or $0.99 per share, in the year-earlier period. Net income for the second quarter of 1996 included an income tax benefit of $9.0 million, or $0.62 per share, which recognized, for financial reporting purposes, the benefit of certain net operating loss carry forwards available to offset estimated future earnings. No similar benefit was recorded in 1997. Net sales for the three months ended June 30, 1997 totaled $145.8 million versus $152.6 million in the year-earlier period. Net income for the first six months of 1997 totaled $12.7 million, or $0.87 per share. This compares with net income of $19.0 million, or $1.32 per share, a year ago, including the income tax benefit of $9.0 million, or $0.62 per share. For the first half of 1997, Avondale reported net sales of $285.3 million compared with $309.1 million in the year-earlier period. "The increase in income before income taxes for the second quarter follows a similar positive performance in the first period," remarked Albert L. Bossier, Jr., Chairman and Chief Executive Officer. "This favorable trend directly reflects the considerable investments we have made in capital and new manufacturing systems to increase the Company’s productivity and efficiency. Our backlog currently amounts to a record $3.8 billion, including unexercised options for vessels under multi-ship contracts. "An important strategic objective has been to build a more balanced base of work between commercial and military contracts. The $332 million contract award during the second quarter for two crude carriers for ARCO Marine is indicative of Avondale ‘s potential to capitalize on our proven shipbuilding expertise. These tankers will be designed for compliance with the new double-hull standards that have been mandated by the Oil Pollution Act of 1990. As the phase-in of this requirement continues, we expect other opportunities for additional contracts to develop." Bossier noted, "Based on the Company’s strong operating results through the first half and solid financial condition at June 30, 1997, as evidenced by a debt to equity ratio of only 29%, we believe that 1997 as a whole will mark another year of noteworthy progress for Avondale. We are continuing to pursue new contracts but are also intent on ensuring that the work on existing awards proceeds as planned. The importance of this operating focus was highlighted during the second quarter by our formal start on the contract for the Navy’s initial LPD-17 amphibious transport ship. Avondale is the prime contractor for this $641 million ($1.5 billion including unexercised options) contract that represents the first vessel in what is planned to be one of the Navy’s largest programs over the next decade." Avondale Industries, Inc., headquartered in metro New Orleans designs, builds and overhauls both military and commercial ships.