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NEWPORT NEWS, Va., April 12, 2019 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) announced today that its Newport News Shipbuilding division has received a $727.4 million contract modification from General Dynamics Electric Boat to continue the procurement of long-lead-time material for Virginia-class submarines.
The award provides new funding to an existing contract for long-lead-time material to support construction of Block V submarines. The current contract brings the overall contract value to $1.04 billion.
“We are pleased to have received additional advanced procurement funds, which allows us to continue procuring long-lead-time materials and is important to our submarine industrial base of more than 5,000 companies across 48 states,” said Dave Bolcar, Newport News’ vice president of submarine construction. “The start of early manufactured material is already underway for Block V submarines, which will include enhanced technology for today’s warfighters.”
Newport News is teamed with General Dynamics Electric Boat on the Virginia class, a class of nuclear-powered fast attack submarines being built to replace the Los Angeles-class submarines as they are retired.
Virginia-class submarines incorporate dozens of new technologies and innovations that increase firepower, maneuverability and stealth and significantly enhance their warfighting capabilities. These submarines are capable of supporting multiple mission packages and can operate at submerged speeds of more than 25 knots for months at a time.
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 provides a wide range of professional services through its Fleet Support, Mission Driven Innovative Solutions, Nuclear & Environmental, and Oil & Gas groups. Headquartered in Newport News, Virginia, HII employs more than 40,000 people operating both domestically and internationally. For more information, visit:
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.