Newport News Announces Good 2Q Results

Newport News Shipbuilding Inc. reported a 16 percent increase in second-quarter operating profits on strength in its construction segment. The company, which is at the center of an ongoing hostile takeover battle between rivals General Dynamics Corp. and Northrop Grumman Corp. posted net earnings of $21 million, or 69 cents per share, for the quarter, including merger-related charges of about $0.17 per share. Adjusted for nonrecurring items, Newport News reported earnings of 86 cents per share compared with 74 cents per share a year ago. Revenues totaled $576 million versus $532 million in the second quarter of 2000 on strong gains in its construction segment due to the ramp up in activity on the Virginia-class submarine program and build-up on the new CVN77 carrier construction project. The Newport News, Virginia-based defense contractor said nothing about its merger prospects. "While managing our strategic initiatives we maintained our operating focus and achieved another outstanding quarter," said William Fricks, chairman and CEO. "We reported solid growth in revenues, EPS, and cash flow," he said. "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." Construction revenues rose 20 percent compared with the second quarter of 2000. Engineering revenues rose nine percent, the company said. - (Reuters)