NEWPORT
NEWS SHIPBUILDING REPORTS SECOND QUARTER EARNINGS
ADJUSTED
EPS UP 16 PERCENT FROM PRIOR YEAR’S QUARTER
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NEWPORT NEWS, Va., July 17, 2001 – Newport News Shipbuilding (NYSE:
NNS) today reported net earnings of $21 million, or
$0.69 per diluted share, for the second quarter of 2001.
Earnings before interest and taxes (EBIT) for the quarter
were $49 million. The second quarter results included
merger related charges of approximately $9 million,
or $0.17 per share. Adjusted for these nonrecurring
items, the Company’s earnings per share (EPS) were $0.86,
up 16 percent from $0.74 per diluted share reported
in the same period one year ago. Free cash flow
was $73 million for the quarter, or $2.33 per share.
The second quarter revenues were $576 million, up 8 percent from $532
million reported in the second quarter of 2000.
The revenue growth was driven by strong performance
in both the Construction and Engineering segments.
“Construction revenues advanced 20 percent over the
second quarter of 2000 and Engineering revenues increased
9 percent over the same period a year ago,” said Fricks.
“The Construction segment continues to benefit from
the ramp up in activity on both Virginia-class
submarines and CVN 77. Design efforts on the CVNX
propulsion plant drove the higher Engineering revenues.”
Consistent with the revenue gains, adjusted EBIT of
$58 million in the second quarter increased 7 percent
over the $54 million reported in the same period last
year.
“While managing our strategic initiatives we maintained our
operating focus and achieved another outstanding quarter,”
noted Chairman and Chief Executive Officer William P.
Fricks. “We reported solid growth in revenues,
EPS, and cash flow. In addition, we redelivered
Nimitz after a successful refueling and negotiated
a $1.5 billion contract for the Eisenhower refueling
and overhaul, increasing our backlog to $8.3 billion
at the end of the second quarter.”
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Newport News Shipbuilding designs and constructs nuclear powered aircraft
carriers and submarines for the U.S. Navy and provides
lifecycle services for ships in the Navy fleet.
The Company employs about 17,400 people, and has revenues
of approximately $2 billion.
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*
Nonrecurring items consists of approximately
$9 million of merger related charges recognized
in the second quarter of 2001.
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*
Nonrecurring items consists of approximately
$9 million of merger related charges recognized
in the second quarter of 2001.
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Notes:
(1)
Funded backlog was $6.3 billion, $6.1 billion,
and $2.2 billion at 6/17/2001, 3/18/2001, and 12/31/2000, respectively.
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CAUTIONARY STATEMENT FOR
PURPOSES OF "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995
This news release contains
forward-looking statements concerning, among
other things, the company’s prospects, expectations
and business objectives and strategies. In this
release, these forward-looking statements are
identified by terms and phrases such as, but
not limited to, "outlook," "estimates,"
“expectation,” "expects," “expect
to,” “future,” "goal," "anticipation,"
“targeted,” "will ensure," “will be,”
“will assume,” “will benefit,” “will increase”
“will provide,” “will start,” "once under
contract," “should,” “objectives,” “on
track,” “progresses toward,” and "scheduled."
Readers are cautioned that these statements
are based on assumptions that are subject to
risks and uncertainties. No assurance can be
given that the company’s actual results will
not differ materially from the results discussed
in these statements. Factors that might cause
such a difference include, but are not limited
to, those discussed in the company’s 2000 Annual
Report to Stockholders and in Item 1 of the
company’s 2000 Annual Report on Form 10-K (under
the caption "Government Contracting, Claims
and Investigations") and in Note 13 (“Commitments
and Contingencies - Government Contracting and
– Significant Estimates") and Note 3 (“Commitments
and Contingencies – Government Contracting”)
to the Consolidated Financial Statements of
the company contained in its 2000 Annual Report
on Form 10-K.
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