Newport News, VA-based Huntington Ingalls Industries, Inc.’s HII Newport News Shipbuilding segment broke ground yesterday for the shipyard's new joint manufacturing assembly facility (JMAF), which will support the construction of aircraft carriers and submarines.
The first phase of the project will be ready by 2017 which will feature production bays to enhance construction efficiencies for the Gerald R. Ford-class aircraft carrier and Virginia-class submarine programs under current contracts.
The JMAF will have multiple worksites, advanced technology, automated equipment, heavyweight cranes, large transportation doors and specialty paint bays. It will also support current and future production work on aircraft carriers and submarines.
Management believes that this facility will offer better quality of life for shipbuilders by bringing the work indoors and hold on to some of the well-paid jobs in Newport News in the future.
Meanwhile, Newport News Shipbuilding clinched a $23.8 million contract from the U.S. Navy for nuclear propulsion and complex modernization work on the aircraft carrier USS George H.W. Bush (CVN 77). The modernization work is expected to be completed by Nov 2015 at Norfolk Naval Shipyard.
In the first quarter of 2015, Newport News Shipbuilding reported revenues of $1,061 million, up 1.3% year over year. The rise was primarily due to higher sales in submarines and fleet support services.
However, cost overrun at some of its carrier programs, somewhat overlapping product lines and cut-throat competition from General Dynamics Corporation GD are undermining the company’s efforts to drive efficiency.
Huntington Ingalls currently carries a Zacks Rank #4 (Sell). Lockheed Martin Corporation LMT and Northrop Grumman Corp. NOC are better-placed stocks in the aerospace and defense space carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment