THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, June 22, 1996 TAG: 9606220274
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BLOOMBERG BUSINESS NEWS
DATELINE: WOODLAND HILLS, CALIF. LENGTH: 30 lines
Litton Industries Inc. says it has received an order from the Navy that could be worth up to $1 billion.
The company's Ingalls Shipbuilding division, based in Pascagoula, Miss., will initially receive $329.5 million for construction of an Aegis destroyer.
The contract for that ship includes options for two additional destroyers; if exercised as expected, the options would bring Litton the additional $670.5 million.
In a statement, Litton said the options will probably be exercised after the Navy's 1997 budget takes effect. The U.S. government's fiscal year 1997 begins Oct. 1.
Not including the option ships, Ingalls' backlog totals $3.6 billion for 10 Navy ships.
Litton's stock fell 3/8 to 42 5/8 Friday.
This order was expected. The Navy splits annual destroyer work between Ingalls Shipbuilding and General Dynamics Corp.'s Bath Iron Works shipyard, in Bath, Maine.
The Navy has bought 34 Aegis destroyers, including 15 from Ingalls. The service's plans call for a fleet of 57 of the ships.
Each Aegis destroyer is 505 feet long, and weighs 8,600 tons. Each carries 90 missiles below-deck, and a multitude of missiles and guns on deck. by CNB