NNS First Quarter EPS UP

Newport News Shipbuilding (NNS) reported net earnings of $21 million, or $.63 diluted share, for the first quarter of 2000. Earnings before interest and taxes (EBIT) for the quarter were $47 million, up from EBIT of $44 million in last year's first quarter. The company reported first quarter revenues of $469 million as compared to last year's figures of $430 million during the same period. This growth in revenue was attributable to gains in the construction and engineering segments. Construction revenues improved $25 million to $206 million as a result of advance planning work on the next aircraft carrier (CVN 77), as well as more activity on the Virginia-class submarine program. NNS finished a nine-month competition for the selection of the Warfare Systems Integrator for CVN 77 this past January. The expansion of the prime contractor role, which includes management of this process - previously performed by the Navy - the company will add approximately $500 million to the value of the construction contract.