Huntington Ingalls Industries, Inc. HII announced that the Newport News Shipbuilding unit has received an indefinite-delivery-indefinite-quantity contract from Puget Sound Naval Shipyard.
The contract was placed for assisting Puget Sound Naval Shipyard and Intermediate Maintenance Facility with maintenance work on the aircraft carriers USS Nimitz (CVN 68) and USS Carl Vinson (CVN 70).
Valued at a maximum of $75 million, the contract will span for two years. The contract work will also include qualified nuclear and nuclear-related trade labor, execution of discrete work packages and training through Jun 30, 2017.
Contract work will be performed at Puget Sound Naval Shipyard in Bremerton, Washington and at Naval Base Coronado in San Diego.
Recently, Newport News Shipbuilding broke ground 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 (read: Huntington Ingalls Unit's JMAF Breaks Ground).
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 Leidos Holdings, Inc. LDOS are better-placed stocks in the aerospace and defense space carrying a Zacks Rank #2 (Buy).
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