Avondale Industries Inc News

Huntington Ingalls Industries announced that René Mathieu has been named vice president and general manager, Avondale Industries Inc., effective May 20. He is responsible for all non-Navy aspects of HII's energy infrastructure business in Avondale, La., including production operations, human resources, business management, engineering and design, facilities management and fabrication. Mathieu will work in Avondale and at Avondale's business development office in Houston. He will report directly to Chris Kastner, HII's corporate vice president and general manager, corporate development.

William E. Rowe, Chairman and CEO of Stewart Enterprises, Inc. announced the election of Thomas M. Kitchen to the Company's Board of Directors. Mr. Kitchen is an investment management consultant with Equitas Capital Advisors, LLC in New Orleans. During a 25-year career with Avondale Industries, Inc., the nation's fifth largest shipbuilder, he served as president, chief financial officer and board member. He currently serves on the board of Conrad Industries, a marine fabricator headquartered in Morgan City, La. Mr. Rowe said, "We are very fortunate to have Tom Kitchen serving on our board. Mr. Kitchen holds both an undergraduate degree and master's degree in Business Administration from the University of New Orleans, which recognized him as its 1997 Alumnus of the Year.

The Federal Trade Commission granted early termination of the waiting period required under federal law for its proposed sale of Avondale Industries Inc. to Litton Industries Inc. The $529 million merger of the two military shipbuilders is subject to approval by Avondale shareholders at a July 27 meeting, after which the deal is scheduled to close.

Litton Industries Inc. said Polar Tankers Inc. has exercised an option for a fourth double-hull crude oil carrier, valued at $197 million, to ship Alaskan crude oil. Under a contract awarded in 1997, Litton's Avondale Industries Inc. subsidiary has three 125,000 DWT crude oil carriers under construction. Delivery of the first ship is scheduled for January 2001. Long Beach, Calif.-based Polar Tankers, a subsidiary of Phillips Petroleum Co., Polar Tankers has an option with Litton Avondale for a fifth ship which could be exercised in the first quarter of calendar year 2001. The Millennium Class "next generation" tankers being built at Litton Avondale are the first new crude-oil carriers being built for the Alaskan trade in compliance with the Federal Oil Pollution Act of 1990.

Conrad Industries announced that the Board of Directors has named Lewis Derbes, Jr. as the company’s new vice president and chief financial officer, effective September 30, 2002. Lew has spent the past 5 years with Northrop Grumman’s Avondale Industries, Inc., recently as the vice president and controller. Lew joins Conrad with an extensive background in all areas of financial and accounting management, including SEC compliance and reporting. Prior to his service with Avondale, Darbes was an accountant with Deloitte & Touche. Conrad’s current CFO, Cecil Hernandez has elected to resign as CFO effective September 30, 2002 to pursue other business opportunities. Cecil will remain as an officer of the company through an agreed upon transition period and will remain as a director.

Avondale Industries, Inc. has agreed to pay $357,750 in penalties for safety and health violations at its shipyard in Avondale, La., and implement a revised safety and health program as part of a settlement agreement announced by the Occupational Safety and Health Administration (OSHA). "We are pleased Avondale has agreed to resolve this matter," said Secretary of Labor Alexis M. Herman. "Avondale's new management has shown they are serious about eliminating safety hazards. OSHA originally inspected the shipyard in October 1998 following union complaints of possible imminent danger from falls, and other health issues. Based on that inspection, OSHA issued 60 citations against the shipbuilder last April and proposed fines of $537,000.

General Dynamics Corp. dropped its unsolicited $1.4 billion bid for Newport News Shipbuilding Inc. (NNS) after the government said it would oppose the union. "While we find the Department of Defense's decision disappointing, we respect it and have withdrawn our offer," said Nicholas Chabraja, chairman and CEO. General Dynamics announced the offer, which valued NNS at $38.50 a share, in February. NNS, which already had a pending agreement to buy Avondale Industries, Inc. for $470 million, asked the government to review it. "General Dynamics believes that its proposed acquisition of NNS would have meant significant savings for the U.S. Navy, enhanced value for the shareholders of both companies, and still preserved jobs," the company said.

Litton Industries, Inc. announced the completion of its acquisition of Avondale Industries, Inc. for $39.50 per share in an all cash transaction valued at approximately $529 million in the aggregate. Avondale, based in New Orleans, designs, builds and overhauls ships for the U.S. Navy, the USCG and commercial customers. Avondale had revenues of approximately $750 million for the year ended December 31, 1998, and employs almost 6,000 people. "We are delighted to welcome Avondale and its employees to Litton," said Michael R. Brown, Litton chairman, president and CEO. "The merger with Avondale significantly broadens Litton's market coverage in both military surface combatants and commercial ships.

The U.S. Navy's drive during the past decade to become more efficient on both the ship contracting and life cycle management sides has proven to be much more than mere talk. The "new" Navy is embodied in the current LPD-17 project, and U.S. Navy senior officers and engineers recently marked a critical milestone in ship research on January 6, 2000, wrapping up a successful phase in the testing of a full-scale propeller for the USS San Antonio (LPD-17) Class amphibious transport dock ship. The tests verify that a new compact design for the LPD-17 CPP meets the seven-year service life cycle requirements. The 17 million cycles completed at the ceremony show that this new design exceeds requirements and that the service life could be extended twofold.

Litton Industries Inc. reportedly sealed a deal to buy Avondale Industries Inc. and said it would press ahead with efforts to acquire Newport News Shipbuilding Inc. despite Pentagon opposition.

NNS Will Not Boost Avondale Bid Newport News Shipbuilding reportedly will not increase its bid for Avondale Industries, Inc., after Avondale said it was prepared to accept an offer from Litton Industries Inc.

Avondale Industries Inc. will reportedly accept an increased cash takeover bid from Litton Industries Inc., forgoing a previous all-stock merger agreement with Newport News Shipbuilding Inc.