"The improvement in earnings per share represents a continuation of the positive trend in our financial performance and a gratifying start for Avondale in 1998," remarked Albert L. Bossier, Jr., Chairman and Chief Executive Officer. "Our success in building Avondale's backlog of both Naval and commercial vessels is now starting to translate into higher sales. During the first quarter, we delivered the fourth and final LSD-CV 52 in that series of amphibious vessels for the Navy. The pace of our shipyard work is up from a year ago, principally reflecting an active phase of construction on the six vessels Avondale has been awarded in the Navy's Strategic Sealift Program. The first two ships in this series are scheduled for delivery during 1998. Also, during the first quarter of 1998, the Navy exercised a $24.2 million option authorizing us to start the procurement of long lead-time materials for the construction of a seventh Sealift ship. We are also experiencing an increase in revenues from the design and engineering for the Navy’s major LPD-17 program and from the crude oil carriers for ARCO Marine. Our backlog presently stands at $3.3 billion, including unexercised options for additional vessels.

Bossier added, "During the second quarter, we expect to complete construction of the marine technology center that Avondale will operate in cooperation with the University of New Orleans School of Naval Architecture. We are excited about the opportunities this center offers not only for the near-term on our current contracts but also in reinforcing Avondale's competitive leadership in the shipbuilding industry. Our success in building the Company's backlog is related directly to the investments we have made to improve productivity. Incorporating computer-aided design processes and other advanced systems into our construction techniques will enhance our capabilities even further. Underscoring our commitment to capitalize fully on these new tools is the ongoing emphasis we are placing on identifying even day-to-day actions that improve our efficiency."

Avondale Industries, Inc., headquartered in metro New Orleans, designs, builds and overhauls both military and commercial vessels.