Newport News Shipbuilding Reports Third Quarter Results

Newport News Shipbuilding reported net earnings of $27 million for the third quarter of 2001. Earnings before interest and taxes (EBIT) for the quarter were $57 million. Included in the third quarter results were approximately $4 million in merger related charges. Absent these non-operational expenses, the Company's earnings per share (EPS) were $0.93, up 39 percent from $0.67 per diluted share reported in the same period one year ago. Free cash flow for the quarter was $36 million bringing the year-to-date total to $153 million, or $4.87 per share. Revenues in the third quarter increased 17 percent to $578 million from $493 million reported in the prior year's quarter. The company reported favorable revenue comparisons across all business segments in the quarter. "I am particularly pleased with the strong performance delivered by the Construction segment," noted Chairman and Chief Executive Officer William P. Fricks. "Construction revenues advanced 35 percent over the third quarter of 2000 led by the continued production ramp-up on both the CVN 77 and Virginia-class programs. Earnings were also strong as adjusted EBIT of $61 million advanced 22 percent over the third quarter of 2000."

"This outstanding financial performance in the third quarter represents a continuation of the favorable results we've delivered throughout the year and positions us to meet or exceed our full year estimates," added Fricks.

Newport News Shipbuilding also announced that the Board of Directors declared a dividend of $0.04 per share on the issued and outstanding stock of the company. The dividend will be payable on or about November 16, 2001 to shareholders of record as of November 5, 2001. This is the twentieth consecutive regular dividend declared since Newport News became an independent company in December 1996.