Jerry St Pe News

Litton Ship Systems' Ingalls Shipbuilding division, located in Pascagoula, Mississippi, has signed a Memorandum of Agreement (MOA) with SeaAmerica Cruise Lines, Inc., based in Hollywood, Fla. Under the MOA, Litton and SeaAmerica will develop a ship design leading to contract negotiations for the construction of two 42,000-ton, 1,000 passenger cruise ships. The program will include options for two additional ships. Construction of the cruise vessels would utilize both of Litton Ship Systems' production facilities — Litton Ingalls Shipbuilding in Pascagoula and Litton Avondale Industries in metro New Orleans, La., and maximizing the resources and experience of both shipyards to achieve operating synergies.

Litton Avondale Industries, a division of Litton Industries, has been awarded a $477.7 million contract by the U.S. Navy for the construction of an additional ship in the Navy's newest class of amphibious assault ships. The cost reimbursable contract is for the construction of LPD 20, the fourth ship in a planned 12-ship program. The follow-on eight ships in the LPD 17 San Antonio Class program will be awarded over the next four years. As prime contractor for the LPD 17 program, Litton Avondale leads a team comprised of Bath Iron Works, Raytheon Electronic Systems and Intergraph Corporation. Design of the lead ship of the class is underway at Litton Avondale with actual production scheduled to begin this summer.

Litton Avondale Industries, a division of Litton Industries, has been awarded a $477.7 million contract by the U.S. Navy for the construction of an additional ship in the Navy's newest class of amphibious assault ships. The cost reimbursable contract is for the construction of LPD 20, the fourth ship in a planned 12-ship program. The follow-on eight ships in the LPD 17 San Antonio Class program will be awarded over the next four years. As prime contractor for the LPD 17 program, Litton Avondale leads a team comprised of Bath Iron Works, Raytheon Electronic Systems and Intergraph Corporation. Design of the lead ship of the class is underway at Litton Avondale with actual production scheduled to begin this summer.

Litton Industries announced that its Ingalls Shipbuilding division has been awarded a $338.2 million contract to build DDG 100, an additional DDG 51 Class Aegis guided missile destroyer for the United States Navy. The contract, awarded late last Friday, represents the funding for a Fiscal Year 2001 ship included in a multi-year contract awarded to Litton Ingalls in March 1998. With the award of DDG 100, Litton Ingalls has been awarded contracts to build 24 Aegis destroyers, of which 13 ships have been delivered. A 14th ship, USS LASSEN (DDG 82), completed successful initial predelivery sea trials last month and will be commissioned in mid-2001. The Navy plans a total of 57 ships in the DDG 51 program, of which 51 have now been procured.

Litton Ingalls Shipbuilding won a $338.2 million contract to build DDG 100, an additional DDG 51 Class Aegis guided missile destroyer for the United States Navy. The contract, awarded late last Friday, represents the funding for a Fiscal Year 2001 ship included in a multi-year contract awarded to Litton Ingalls in March 1998. With the award of DDG 100, Litton Ingalls has been awarded contracts to build 24 Aegis destroyers, of which 13 ships have been delivered. A 14th ship, USS LASSEN (DDG 82), completed successful initial predelivery sea trials last month and will be commissioned in mid-2001. The Navy plans a total of 57 ships in the DDG 51 program, of which 51 have now been procured.

Litton Industries' Ingalls Shipbuilding division has been awarded a $338.2 million contract to build DDG 100, an additional DDG 51 Class Aegis guided missile destroyer for the United States Navy. The contract represents the funding for a Fiscal Year 2001 ship included in a multi-year contract awarded to Litton Ingalls in March 1998. With the award of DDG 100, Litton Ingalls has been awarded contracts to build 24 Aegis destroyers, of which 13 ships have been delivered. A 14th ship, USS Lassen (DDG 82), completed successful initial predelivery sea trials last month, and will be commissioned in mid-2001. The Navy plans a total of 57 ships in the DDG 51 program, of which 51 have now been procured.

Litton Industries promoted Dr. Clark "Corky" Graham to the newly established position of vice president, resource utilization and productivity improvement of Litton Ship Systems (LSS), Graham will be responsible for developing and implementing the plan to optimize the utilization of the combined resources of LSS to achieve the highest levels of efficiency from its facilities, processes and human resources. Graham previously served as president of Litton Marine Systems, which has headquarters in Charlottesville, Va. He reports to LSS senior vice president William P. "Pat" Keene. Prior to joining Litton, Graham served the U.S. Navy with distinction for more than 30 years and held senior positions…

The U.S. Navy awarded Ingalls Shipbuilding, a Northrop Grumman company, a $154.9 million contract to begin advance procurement of materials for the construction of future DDG 51 Class Aegis destroyers. The contract is to purchase a variety of DDG class equipment items for three additional Aegis destroyers authorized by Congress. Actual ship construction contracts are to be awarded to Ingalls and Bath Iron Works in a single, multiyear procurement process to be conducted later this year. The multiyear procurement plan calls for a total of six ships -- three to Bath, three to Ingalls -- with funding scheduled during a three-year period from the 2002 through 2004 fiscal years.

The seventh and final Strategic Sealift ship in the BOB HOPE Class will be christened BENAVIDEZ in ceremonies at the Northrop Grumman Corporation Avondale shipyard Saturday, July 21, 2001, beginning at 10 a.m. The new ship will be named in honor of Medal of Honor recipient Army Master Sgt. Roy P. Benavidez, of Lindenau, Tex. Benavidez distinguished himself in a series of daring and extremely valorous actions while in the Republic of Vietnam assigned to Detachment B56, 5th Special Forces Group (Airborne), 1st Special Forces, U.S. Army. On May 2, 1968, while a Staff Sgt., Benavidez voluntarily led the emergency extraction of a 12-man special…

Lockheed Martin and Northrop Grumman Ingalls Shipbuilding announced the creation of a joint venture partnership under which the two major corporations will submit a proposed "best value" solution for the U.S. Coast Guard's Deepwater Program. This newly formed joint venture - Integrated Coast Guard Systems - formalizes a partnership underway for more than three years. The team is hosting its Functional Design Review (FDR) for the Coast Guard this week at Lockheed Martin's facility in Moorestown. The U.S. Coast Guard's Deepwater Program was established to recapitalize the organization's ships, aircraft and system platforms to support deepwater missions. The missions include Maritime Law Enforcement, Maritime Safety, National Defense and Marine Environmental Protection.

The U.S. Navy announced a $124 million contract modification for continuation of design and test planning of its 21st century DD 21 destroyer program. The contract was awarded to the DD 21 Alliance which includes Ingalls Shipbuilding here and Bath Iron Works of Bath, Me. Ingalls Shipbuilding, a Northrop Grumman company, is leading the DD 21 Gold Team, which includes the Raytheon Company and The Boeing Company, and will receive $52 million for the continuation of its work associated with Phase II of this program. Work involved by the Gold Team during the continuation of Phase II includes the development and maturity of critical technologies such as the vessel's integrated power system, the advanced gun and dual-band radar suite.

Northrop Grumman Corporation has appointed Philip A. Dur as corporate vice president and president of the company's Ship Systems sector - the largest builder of non-nuclear ships for the U.S. Navy. He will assume his new position on Oct. 1, succeeding Jerry St. Pe, who announced his decision to retire on Oct. 31 after 40 years with the company. Dur, a former rear admiral of the U.S. Navy, currently serves as vice president of Program Operations at the Electronic Sensors and Systems Sector, the company's largest sector with annual revenues of approximately $5 billion. He manages the sector's business operations, oversees program execution and acquisition, and alliance activities.

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.

Litton Industries announced that Thomas M. "Tom" Kitchen, a member of the Litton Avondale Industries management team, has been named president of Avondale to succeed Albert Bossier, age 67, who is retiring Nov. 1, 1999, after 42 years of service to Avondale. "Tom Kitchen has played an integral role in the overall success of Avondale since joining the company in 1977," said Jerry St. Pe, Litton executive vice president and COO of Litton Ship Systems (LSS). Kitchen, age 51, joined Avondale in 1977 as an assistant controller. He has advanced through a series of assignments, culminating in his current duties as vice president and CFO. A New Orleans native, he holds a bachelor of science degree in accounting and master of business administration degree from the University of New Orleans.

To say the Gulf of Mexico maritime business had a down year would be a major understatement. But rags-to-riches-to-rags experience of the past has resulted in a consolidated, resourceful group of companies poised to pounce on the next market upturn … which should be very soon. The business trends of consolidation and globalization that have largely defined the late 1990s have touched every level of business in the U.S., including the Gulf of Mexico maritime industry. Companies that had largely depended on "business as usual" are generally out of business today. The result: a resilient industrial base that is poised to prosper in good times and bad. "Business is bad right now, as the oilfield is our primary source of business," said Ralston P.

The consolidation of marine industry assets in the United States has taken a rather unique twist, as Litton Industrys – with a strategy of becoming the marine industry's full-service leader – announced the formation of a new company, the Litton Ship Systems Full Service Center (LSS FSC). Litton, which for years has been amassing an impressive arsenal of marine equipment builders and suppliers from around the globe, formed LSS FSC to operate as a stand-alone business within the existing Litton Ship Systems (LSS) organization, with headquarters in Pascagoula, Miss. LSS FSC will provide its customers a full range of research and development, design analysis and life cycle support services.

The consolidation of marine industry assets in the U.S. has taken a rather unique twist, as Litton Industries — with a strategy of becoming the marine industry's full-service leader — announced the formation of a new company, the Litton Ship Systems Full Service Center (LSS FSC). Litton, which for years has been amassing an impressive arsenal of marine equipment builders and suppliers from around the globe, formed LSS FSC to operate as a stand-alone business within the existing Litton Ship Systems (LSS) organization, with headquarters in Pascagoula, Miss. LSS FSC will provide its customers a full range of research and development, design analysis and life cycle support services.