U.S. Navy awards Ingalls $620 million shipbuilding contract

December 11, 1998 -- Ingalls has been awarded a $620 million contract to build two additional DDG 51 Class Aegis guided missile destroyers for the United States Navy.

The two-ship contract awarded today represents the exercise of an option included in a multi-year, multi-ship contract awarded to Ingalls last year. With today’s award, Ingalls has 21 Aegis destroyers under firm contract; and holds options for four additional ships which will be awarded over the next two years.

Of the 25 ships and options awarded to Ingalls, 11 ships have been delivered. A 12^th Ingalls-built destroyer will be delivered in January.

The Navy plans a total of 57 ships in the DDG 51 program. With awards and options to-date, the Navy has committed to the procurement of 52 ships through the year 2001. The five remaining ships are planned for award in the years 2002 and 2003.

"Building Aegis destroyers and future surface combatants for the U.S. Navy is a major, strategic segment of Ingalls’ business base," said Jerry St. Pe’, Senior Vice President of Litton Industries and President of Ingalls Shipbuilding. "The multi-year procurement approach has brought important stability to the Aegis destroyer program, to our nation’s shipbuilding industrial base, and to our own Company’s business planning process," St. Pe’ said.

"Delivery dates on DDG 51 destroyers at Ingalls extend into 2006, and will keep our experienced, seasoned destroyer builders engaged well into the 21st century," St. Pe' said. Ingalls’ workforce is currently at 11,300.

Including the $620 million awarded today, Ingalls’ total firm business backlog is about $4 billion.

The Navy's Aegis Fleet provides primary protection for the Navy's battle forces. Aegis destroyers, designed to match maximum survivability with potent offensive capability, are 505 feet long, with a beam of 66 feet. Four gas turbine engines power the 9,204-ton ships to speeds in excess of 30 knots. The destroyers' Aegis Combat System is the world's foremost naval weapons system. As the U.S. Navy's first Aegis shipbuilder, Ingalls delivered 19 ships in the 27-ship TICONDEROGA (CG 47) Class of guided missile cruisers.

Litton Industries, headquartered in Woodland Hills, California, Ingalls' parent company since 1961, is a leader in worldwide technology markets for advanced defense, electronic and information systems.