Northrop to close yard, may sell ship business

[unhappycamper]

Northrop to close yard, may sell ship business
By Christopher P. Cavas - Staff writer
Posted : Tuesday Jul 13, 2010 22:22:35 EDT

Northrop Grumman on Tuesday confirmed rumors that it will close down its Avondale shipyard near New Orleans and consolidate its Gulf Coast shipbuilding operations at the company’s Ingalls yard in Mississippi.

In a greater surprise, the company also announced it is exploring strategic alternatives for its shipbuilding business.

Northrop is the Navy’s largest shipbuilder, supplying the service with nuclear-powered aircraft carriers and submarines, surface warships such as DDG 51-class destroyers, and all the Navy’s amphibious ships. Its yard in Newport News, Va., is the only yard in the world capable of building full-sized nuclear carriers. About two-thirds of all Navy ships are built by the company. The Ingalls yard in Pascagoula also builds the Coast Guard’s National Security Cutters.

~snip~

The company announced it would take a pre-tax charge estimated at $113 million in the second quarter of 2010 as a result of the consolidation. A $296 million tax benefit unrelated to the shipbuilding decisions also will be included in the second quarter financial results. The company’s 2010 guidance will be updated with the new financial figures July 29.

The consolidation is also leading the company to increase its expected costs to complete two LPD 17-class ships by about $210 million, which the shipbuilder will take off its expected margin for the ships.

[JustABozoOnThisBus]

1. Perhaps we can get our war materiel from China

since they have the basic manufacturing infrastructure now. Steel, autos, shipbuilding, it's all been going offshore since WW2/Korea.

Of course, sourcing weapon systems from China assumes they are not the enemy ...

:hi: