| NEW ORLEANS, La. (April 28, 1999) Avondale Industries, Inc. (NASDAQ/NMS - AVDL) today reported results for the first quarter of 1999 that included net income of $7.5 million, or $0.56 per diluted share, compared to net income of $5.3 million, or $0.37 per diluted share, that was reported for the same period in 1998. However, net income for the first quarter of 1998 reflected an after-tax charge of approximately $2.0 million, or $0.14 per diluted share, related to the early adoption of AICPA Statement of Position 97-3 that prescribes certain accounting practices for certain insurance-related assessments. Sales for the three months ended March 31, 1999 increased to $195.3 million compared with $184.6 million in the year-earlier period.
Albert L. Bossier, Jr., Chairman and Chief Executive Officer, remarked AAvondale is in the midst of one of the most active shipbuilding periods in its history. Our firm backlog currently totals approximately $1.8 billion, and an additional $820 million is held as options by customers for additional military and commercial vessels. We are continuing to pursue other military and commercial opportunities, but an important focus of our energies has been on executing our current backlog of orders profitably. Much of Avondale's recent improvement in profitability relates to ongoing programs designed to improve productivity and raise efficiency. We remain dedicated to maintaining this emphasis in order to ensure a strong competitive standing for future shipbuilding opportunities." |