Marine Link
Wednesday, August 22, 2018

Litton Ship Systems News

Litton Awarded $105.5M Contract

Litton's Ingalls Shipbuilding won the U.S. Navy contract modification valued at $105.5 million for initial funding of the ongoing repair and restoration of the Aegis guided missile destroyer USS COLE (DDG 67). The USS COLE was damaged in an October 12, 2000 terrorist attack in Aden, Yemen. In November 2000, Litton Ingalls was selected by the U.S. Navy to repair USS COLE, which arrived at the Litton shipyard in mid-December last year. Litton Ingalls has been working under a letter contract that covered a damage assessment as well as work required to return the ship to an on-land production area at Litton Ingalls for the repair and restoration project. Additional modifications to the contract are subject to a full damage assessment and changes in the scope of the restoration work.

Litton Names Graham VP

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…

U.S. Navy Awards Litton $338.2 Million Shipbuilding Contract

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.

USN Awards Litton $338.2M Contract

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.

Navy Awards Litton $338M Contract

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.

AMCV Outlines Expansion Plans

American Classic Voyages Co., which is currently engaged in a high-profile effort to build cruise ships in the U.S., recently provided financial information on its expansion plans and its outlook for 2001. The 1,212-passenger ms Patriot, the first ship in American Classic Voyages' United States Lines fleet, just completed a $21 million refurbishment at Cascade General Shipyard in Portland, Oregon. The ship is in Los Angeles for the beginning of a series of inaugural activities that will introduce 6,000 travel agents to United States Lines. The ms Patriot will begin its permanent seven-night Hawaiian Island itinerary with its inaugural cruise on December 9.

AMCV Outlines Expansion Plans

American Classic Voyages Co., which is currently engaged in a high-profile effort to build cruise ships in the U.S., recently provided financial information on its expansion plans and its outlook for 2001. The 1,212-passenger ms Patriot, the first ship in American Classic Voyages' United States Lines fleet, just completed a $21 million refurbishment at Cascade General Shipyard in Portland, Oregon. The ship is in Los Angeles for the beginning of a series of inaugural activities that will introduce 6,000 travel agents to United States Lines. The ms Patriot will begin its permanent seven-night Hawaiian Island itinerary with its inaugural cruise on December 9.

Editor's Note

The annual parade of Great Ships in our December edition includes a roster of unique vessels, from the record-setting heavy lift ships Black Marlin and Blue Marlin, to Vasco da Gama, the world’s largest trailing suction hopper dredger. And while these ships — plus the Marine Innovations feature starting on page 38 — help to highlight the industry’s many triumphs over the past 12 months, there are a full-plate of technical and non-technical issues, which will keep the marine industry challenged for many years to come. The complex matter of ship casualties — the causes, environmental ramifications and potential solutions — is now a top-agenda item of many organizations both inside and out of the marine world.

People & Company News

Captain Marine Services, Inc. of Dana Beach, Fla. has been servicing the yachting and sport diving industries for the last nine years for all of their need above and below the waterline as well as, providing immediate procurement consolidation and delivery of marine parts, supplies, and diving equipment. President Capt. Thomas J. Dunzelman recently announced the opening of a new shipping, receiving and agents office in Turtle Cove Marina, Providenciales, Turks & Caicos Islands, BWI. With many years of experience in the Turks & Caicos Islands, they can advise your clients as well as your crew on what to do and see while visiting Providenciales. Captain Marine Services provides an office where a captain can talk to another captain/engineer about their equipment needs.

Kvaerner Appoints Smith VP Business Development

In another significant executive move at its Philadelphia shipyard, Kvaerner announced the appointment of Brian M Smith, as Vice President, Business Development. Until recently, British born Brian Smith held a similar position with Litton Ship Systems, in New Orleans, where he since 1996 has been employed as Director - Business Development/ Strategic Planning. He will take up his position with Kvaerner in Philadelphia during mid November. Smith is a well-established figure within the American commercial shipbuilding market. Prior to his joining Avondale in 1996, Mr. Smith worked extensively in the marketing, strategic planning and business development area, much of it within the maritime industry.

Up, Up and Away?

The only logical reason the sustained high price per barrel of oil has not already been dubbed "OIL BOOM 2000" is the fact that hindsight is 20/20. Companies that operate, build and supply vessels for the fickle oil patch have seen schizophrenic markets of days past bring industry goliaths to their knees. There remains a reserve among Gulf of Mexico area companies regarding prospects 2000 and beyond, but there is a growing feeling the business - which has largely been dismal since the end of 1997 - is set to embark on one of those notorious end runs that will fill area yards with healthy backlogs for years. The reason for the "look before you leap" attitude is also largely rooted in changing business dynamics which have effectively altered the way in which the world does business.

Is It Back?

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.

News Briefs

The Delaware River Pilots Association recently contracted with Carey's Diesel to repower a vessel with a pair of Isotta Fraschini marine diesel engines, rated at 550 hp @ 2,400 rpm. This is the third vessel the Pilots Association has chosen to repower using Isotta Fraschini engines. The first Isotta Fraschini repowers were two 56,000-lb. vessels named Wilmington and Delaware. Wilmington's two 8V-72T Detroit Diesel two-cycle, eight cylinder engines were replaced with two V1308T2 MLH Isotta Fraschini four-stroke, V-8 cylinder marine diesel engines. Delaware's two 8V-92 Detroit Diesel two-cycle, eight cylinder engines were replaced with a pair of V1312T2 MLH Isotta Fraschini four-stroke, V-12 cylinder marine diesel engines.

Bossier Retires, Kitchen Takes Avondale Helm

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.

Litton Awarded $477.7M Contract

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 Reports FY2000 Third Quarter Results

Litton Industries, Inc. recently reported results for the third fiscal quarter ended April 30, 2000. Diluted earnings per share rose 23% to $1.35 for the third quarter, compared with diluted earnings per share of $1.10 for the third quarter of fiscal 1999. Excluding a one-time gain on sale of businesses, third quarter diluted earnings per share increased 21% to $1.33. Net earnings for the third quarter were $61.8 million versus $50.9 million for the same period last year. Revenue for the third quarter increased 11% to $1.4 billion, compared with $1.26 billion for the comparable period of the prior year. Revenue for the first nine months of fiscal 2000 was $4.1 billion, a 15% increase over the first nine months of fiscal 1999.

Litton Awarded $477.7M Contract

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 Reports Good 3Q Results

Litton Industries, after seeing its shares drop more than 60 percent over the past 12 months (see chart, page 2), caught in a bearish defense industry down draft, reported great third quarter results last week. Litton Industries reported that diluted earnings per share rose 23% to $1.35 for the third quarter, compared with diluted earnings per share of $1.10 for the third quarter of fiscal 1999. Excluding a one-time gain on sale of businesses, third quarter diluted earnings per share increased 21% to $1.33. Net earnings for the third quarter were $61.8 million versus $50.9 million for the same period last year. Revenue for the third quarter increased 11% to $1.4 billion, compared with $1.26 billion for the comparable period of the prior year.

Litton Announces Completion of Avondale Acquisition

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.

Pascagoula ... World’s Burgeoning Cruise Capitol?

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.

KCI Konecranes To Supply To Ingalls

KCI Konecranes VLC Corporation was granted the contract to provide one of the world's largest cranes to Ingalls Shipbuilding, a division of Litton Ship Systems. Known as Goliath, because of its unusually large size, the crane is one of fewer than 100 worldwide. The 660-ton capacity crane will allow Ingalls to assemble sections of ships that are triple the size than previous, thus utilizing dock space more efficiently. Resembling a giant sawhorse at 329 ft. (100 m) tall, the crane spans 411 ft. (125.2 m) and employs 96 wheels to travel down a delineated runway. Goliath also holds two trollies, dual self-controlled diesel power plants, and boasts AC variable frequency controls with built-in programmable logic.

Litton, SeaAmerica Sign Agreement On Cruise Ship Program

Litton Ship Systems' Ingalls Shipbuilding division, has signed a Memorandum of Agreement (MOA) with SeaAmerica Cruise Lines, Inc. to 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 ships will utilize both of Litton Ship Systems' production facilities - Litton Ingalls Shipbuilding in Pascagoula and Litton Avondale Industries in metro New Orleans, Louisiana, and maximize the resources and experience of both shipyards to achieve operating synergies. "SeaAmerica anticipates receiving MARAD Title XI financing for our new program,'' said David W. Turner, SeaAmerica chairman and chief executive officer.

Legal Briefs

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.

Maritime Reporter Magazine Cover Aug 2018 - The Shipyard Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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