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.