Huntington Ingalls Industries Awarded $936 Million Contract to Build Navy Destroyer

Rhea-AI Summary

Huntington Ingalls Industries (HII) has secured a $936 million contract for constructing an additional Arleigh Burke-class destroyer for the U.S. Navy. This follows a previous $5.1 billion multiyear contract awarded in 2018 for six destroyers. Ingalls Shipbuilding President Brian Cuccias emphasized the positive momentum this contract brings to HII and its extensive supplier network. Ingalls has successfully delivered 32 destroyers and currently has four more under construction, reinforcing its position as a leader in military shipbuilding.

Positive

• Awarded a $936 million contract for an additional Arleigh Burke-class destroyer.
• Positive momentum for HII and over 600 suppliers.
• Strong track record with 32 destroyers delivered and four under construction.

Negative

• None.

PASCAGOULA, Miss., June 30, 2020 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries’ (NYSE: HII) Ingalls Shipbuilding division has been awarded a $936 million contract for the construction of an additional Arleigh Burke-class (DDG 51) Flight III destroyer for the U.S. Navy. In 2018, Ingalls was awarded a $5.1 billion fixed-price incentive, multiyear contract for construction of six Arleigh Burke-class Flight III destroyers for the U.S. Navy.

“We take great pride in the craftsmanship of our shipbuilders, and in the capabilities of our world-class shipyard,” Ingalls Shipbuilding President Brian Cuccias said. “This contract award provides great momentum for Ingalls and our more than 600 suppliers, in nearly 40 states, as we enter the second half of the year. We continue to focus on high performance and providing the greatest value possible to our customers.”

Ingalls has delivered 32 destroyers to the Navy and has four more under construction including Frank E. Petersen Jr. (DDG 121), Lenah H. Sutcliffe Higbee (DDG 123), Jack H. Lucas (DDG 125) and Ted Stevens (DDG 128). Ingalls delivered Delbert D. Black (DDG 119) to the Navy in April.

Arleigh Burke-class destroyers are capable, multi-mission ships and can conduct a variety of operations, from peacetime presence and crisis management to sea control and power projection, all in support of the United States’ military strategy. These guided missile destroyers are capable of simultaneously fighting air, surface and subsurface battles. These ships contains myriad offensive and defensive weapons designed to support maritime defense needs well into the 21st century.

Huntington Ingalls Industries is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII’s Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi have built more ships in more ship classes than any other U.S. naval shipbuilder. HII’s Technical Solutions division supports national security missions around the globe with unmanned systems, defense and federal solutions, nuclear and environmental services, and fleet sustainment. Headquartered in Newport News, Virginia, HII employs more than 42,000 people operating both domestically and internationally. For more information, visit:

• HII on the web: www.huntingtoningalls.com
  
• HII on Facebook: www.facebook.com/HuntingtonIngallsIndustries
  
• HII on Twitter: www.twitter.com/hiindustries 
  
• HII on YouTube: www.youtube.com/huntingtoningalls
  
• HII on Instagram: www.instagram.com/huntingtoningalls

Statements in this release, as well as other statements we may make from time to time, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions; adverse economic conditions in the United States and globally; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update or revise any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make.

Contact:

Teckie Hinkebein
teckie.hinkebein@hii-co.com
(228) 935-1323 

FAQ

What is the latest contract awarded to Huntington Ingalls Industries (HII)?

HII was awarded a $936 million contract for the construction of an additional Arleigh Burke-class destroyer for the U.S. Navy.

How many Arleigh Burke-class destroyers has HII delivered?

HII has delivered 32 Arleigh Burke-class destroyers to the U.S. Navy.

What was the value of the previous contract awarded to HII in 2018?

In 2018, HII was awarded a $5.1 billion fixed-price incentive, multiyear contract for the construction of six Arleigh Burke-class Flight III destroyers.

How many destroyers are currently under construction by HII?

HII has four Arleigh Burke-class destroyers currently under construction.

What capabilities do Arleigh Burke-class destroyers possess?

Arleigh Burke-class destroyers are capable, multi-mission ships designed for various operations, including air, surface, and subsurface battles.