Huntington Signs LPD 17 Navy Deal - Analyst Blog
10 Décembre 2012 - 2:30PM
Zacks
Ingalls Shipbuilding division of
Huntington Ingalls Industries (HII) has received a
cost-plus-fixed-fee contract to provide life-cycle engineering and
support services for USS San Antonio (LPD 17) class of amphibious
transport docks of U.S. Navy. The contract, worth $54.0 million, is
the third of the four annual options that was associated with a
base contract awarded in February 2010.
Per the contract, the company will be providing post-delivery
planning and engineering services, systems integration and
engineering support services, and research engineering. Moreover,
the company will be providing material support, fleet modernization
program planning services, supply chain management services as well
as maintenance and training for certain LPD 17-class shipboard
systems.
U.S Navy’s LPD 17-class ships can replace more than 41 ships, which
include the LPD 4, LSD 36, LKA 113 and LST 1179 classes of
amphibious ships due to their extraordinary functions. It provides
the Navy and Marine Corps with sea-based platforms that are
networked and modern and are suitable to operate with most modern
platforms, such as the MV-22 Osprey.
The San Antonio-class ships are 684 feet long and 105 feet wide.
The ships are designed to deliver up to 800 Marines ashore by
landing craft and helicopters. These ships transport the US Marine
Corps advanced amphibious assault vehicles, air-cushioned landing
craft and the MV-22 Osprey tiltrotor aircraft to troublesome spots
throughout the world.
In March 2011, Northrop Grumman Corporation (NOC)
had spun-off Huntington Ingalls, which was a subsidiary of
Northrop. Like its spun-off partner, Huntington Ingalls also has
been providing services to the U.S. Navy. Recently, the company had
received a cost-plus-fixed-fee, level-of-effort contract option
worth $142.7 million from the U.S. Navy. As per the contract, the
company has to work on operational and decommissioning of U.S. Navy
submarines, conversion submarines, special mission submersibles,
submarine support facilities and related programs.
Huntington Ingalls Industries designs, builds and maintains nuclear
and non-nuclear ships for the U.S. Navy and Coast Guard and
provides after-market services for military ships around the globe.
Contract for third out of four annual options demonstrate the
Navy’s confidence in Huntington. Going forward, these types of
contracts would add to the company’s top line and bottom line.
However, this will be offset by apprehension regarding defense
cutbacks that is also looming around the other defense majors like
General Dynamics Corporation (GD) and
Lockheed Martin Corporation (LMT). The company
presently retains a short-term Zacks #3 Rank (Hold).
GENL DYNAMICS (GD): Free Stock Analysis Report
HUNTINGTON INGL (HII): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
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