Inc. announced the impacts of Hurricanes Katrina
and Rita and the award of contracts totaling $9.4 million to build a 99 ft., 4200
HP Z-Drive Tug for South Puerto Rico Towing Corporation and the 16th ST Tug
for the U.S. Army.
Johnny Conrad, President and CEO stated "In the wake of the devastation on
the Gulf Coast caused by Hurricanes Katrina and Rita, our thoughts and prayers
go out to the victims ravaged by these disasters. Hurricane Katrina
have a direct impact on any of our four shipyards. Unfortunately, Hurricane
Rita did not spare our Orange employees from loss and damage. Our Orange
facility has sustained minor wind damage to our buildings that can be repaired
but did not receive any water damage. Our equipment and jobs in progress were
not damaged. The costs to clean up and repair our facility will in large part
be covered by our insurance program. Power has been restored to our Orange
yard and we are gradually returning to normal operations as employees are able
to return to the area after three weeks of limited activity."
Conrad further commented, "These events have also impacted our vendors'
and subcontractors' abilities to supply us with necessary goods and services.
Consequently, it is not yet possible to determine the amount of delay and
additional cost that will result from these hurricanes. Conrad is working
with suppliers and others to insure that materials continue to flow to our
We at Conrad Industries have
been very fortunate to escape disruption in
service at three of our four locations, and with Orange back on line we are
fully operational at all of our facilities. In addition, we have openings for
qualified welders, fitters, supervisors and project management personnel. "
Conrad also commented, "We are excited to announce the signing of
contracts for the construction of a 99', 4200 HP Z-Drive Tug for South Puerto
Rico Towing Corporation and the 16th ST Tug for the U.S. Army. These two new
contracts are scheduled to be constructed at our Orange facility and we do not
expect any significant impact on these jobs from Hurricane Rita. With these
additions, our current backlog is approximately $40 million. The Z-Drive Tug
for South Puerto Rico Towing Corporation is similar to other tugs that Orange
has previously built."
Additionally Conrad commented "We appreciate the U.S. Army TACOM
Watercraft Group's confidence by awarding this contract for the Small Tug
"ST916". This tug is the latest of over one hundred hulls provided by Conrad
Industries to U.S. Government Agencies over the past thirty years. Orange
Shipbuilding started work on a solicitation for this project in 1992. In 1995
an award was made for one tug with options. Since then Orange Shipbuilding
has delivered 15 identical tugs to the U.S. Army."