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HII Awarded $152 Million Advance Planning Contract for the Third Ford-Class Aircraft Carrier, Enterprise (CVN 80)

NEWPORT NEWS, Va., May 23, 2016 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) was awarded a $152 million contract today for advance planning for the construction of the aircraft carrier Enterprise (CVN 80). The third aircraft carrier in the Gerald R. Ford class was named in honor of the U.S. Navy’s first nuclear-powered aircraft carrier, USS Enterprise (CVN 65).

The work, which includes engineering, design, planning and procurement of long-lead-time material, will be performed at the company’s Newport News Shipbuilding division through March 2018.

Construction on Enterprise is slated to begin in 2018 with delivery to the Navy in 2027. The new Enterprise will eventually replace the USS Dwight D. Eisenhower (CVN 69) when the aircraft carrier enters the fleet.

“We are eager to begin planning and purchasing long-lead-time material for the next Enterprise,” said Mike Shawcross, Newport News’ vice president of CVN 79 and CVN 80 construction. “Advance planning allows us to begin applying lessons learned from CVN 78 and CVN 79 more effectively, while providing stability to our workforce and the industrial base, in order to deliver the ship at the lowest cost possible.”

Shipbuilders have captured thousands of lessons learned in the process of building Gerald R. Ford, most of which are being implemented as cost-saving initiatives in building the second ship in the class, John F. Kennedy (CVN 79). These initiatives will continue on Enterprise, and HII will work with the Navy to identify additional cost-saving initiatives for future Ford-class carrier construction.

Huntington Ingalls Industries is America’s largest military shipbuilding company and a provider of engineering, manufacturing and management services to the nuclear energy, oil and gas markets. 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. Headquartered in Newport News, Virginia, HII employs nearly 35,000 people operating both domestically and internationally. For more information, visit:

Statements in this release, 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 obtain new contracts, estimate our future contract costs and perform our contracts effectively; changes in government regulations and procurement processes and our ability to comply with such requirements; our ability to realize the expected benefits from consolidation of our Ingalls facilities; natural disasters; adverse economic conditions in the United States and globally; risks related to our indebtedness and leverage; 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 obligations to update any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make.

Contact: Christie Miller Christine.Miller@HII-co.com (757) 380-3581

Source:Huntington Ingalls Industries, Inc.