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Huntington Ingalls (HII) Unit Wins $88M Contract for NSC 9
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Huntington Ingalls Industries, Inc.’s (HII - Free Report) subsidiary, Ingalls Shipbuilding has clinched a contract from the U.S. Coast Guard to procure long-lead materials for the ninth National Security Cutter (“NSC”). The contract is valued at $88.2 million.
Huntington Ingalls will use advance procurement funds to buy important items for NSC 9, including steel, main propulsion systems, generators, electrical switchboards and major castings.
According to Kari Wilkinson, Ingalls’ Vice President of program management, the latest contract will enable the company’s shipbuilders to commence work on the assumption that it will be awarded the construction contract for the next ship under this program.
The company has already delivered five NSCs. It expects to deliver Munro, the sixth NSC, and launch Kimball, the seventh NSC, in the fourth quarter of 2016. The eighth NSC, Midgett, is expected to be laid later this year.
These cutters will replace the old 12 Hamilton-class High-Endurance Cutters. The new of class comprises ships 418 feet long with a 54-foot beam, which can shift 4,500 tons with a full load. The cutters can cover 12,000 miles, with a maximum speed of 28 knots.
Per the statement of the Coast Guard leadership, these ships will help to strengthen front-line operations in the fight against crime, particularly drug interdictions. Ingalls Shipbuilding is providing the advanced fleet of cutters to allow the Coast Guard to continue carrying out its daily missions of protecting the U.S. shores.
Demand for this class of ships is enabling Huntington Ingalls to build each ship more effectively and efficiently than its predecessor. This means that if Huntington Ingalls receives more orders for these cutters from the U.S. Navy, it will further boost economies of scale.
Huntington Ingalls is the prime industrial employer in Virginia. It is the sole designer and manufacturer of nuclear-powered aircraft carriers in the U.S. Over 70% of the active U.S. Navy fleet consists of Huntington Ingalls ships. The company has developed an exclusive ability in all aspects of aircraft carrier designing, production, innovation, repair, and technical and engineering support.
Huntington Ingalls currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the aerospace and defense space include Engility Holdings, Inc. , General Dynamics Corporation (GD - Free Report) and Ducommun Inc. (DCO - Free Report) . While Engility Holdings and Ducommun sport a Zacks Rank #1 (Strong Buy), General Dynamics carries a Zacks Rank #2 (Buy).
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Huntington Ingalls (HII) Unit Wins $88M Contract for NSC 9
Huntington Ingalls Industries, Inc.’s (HII - Free Report) subsidiary, Ingalls Shipbuilding has clinched a contract from the U.S. Coast Guard to procure long-lead materials for the ninth National Security Cutter (“NSC”). The contract is valued at $88.2 million.
Huntington Ingalls will use advance procurement funds to buy important items for NSC 9, including steel, main propulsion systems, generators, electrical switchboards and major castings.
According to Kari Wilkinson, Ingalls’ Vice President of program management, the latest contract will enable the company’s shipbuilders to commence work on the assumption that it will be awarded the construction contract for the next ship under this program.
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The company has already delivered five NSCs. It expects to deliver Munro, the sixth NSC, and launch Kimball, the seventh NSC, in the fourth quarter of 2016. The eighth NSC, Midgett, is expected to be laid later this year.
These cutters will replace the old 12 Hamilton-class High-Endurance Cutters. The new of class comprises ships 418 feet long with a 54-foot beam, which can shift 4,500 tons with a full load. The cutters can cover 12,000 miles, with a maximum speed of 28 knots.
Per the statement of the Coast Guard leadership, these ships will help to strengthen front-line operations in the fight against crime, particularly drug interdictions. Ingalls Shipbuilding is providing the advanced fleet of cutters to allow the Coast Guard to continue carrying out its daily missions of protecting the U.S. shores.
Demand for this class of ships is enabling Huntington Ingalls to build each ship more effectively and efficiently than its predecessor. This means that if Huntington Ingalls receives more orders for these cutters from the U.S. Navy, it will further boost economies of scale.
Huntington Ingalls is the prime industrial employer in Virginia. It is the sole designer and manufacturer of nuclear-powered aircraft carriers in the U.S. Over 70% of the active U.S. Navy fleet consists of Huntington Ingalls ships. The company has developed an exclusive ability in all aspects of aircraft carrier designing, production, innovation, repair, and technical and engineering support.
Huntington Ingalls currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the aerospace and defense space include Engility Holdings, Inc. , General Dynamics Corporation (GD - Free Report) and Ducommun Inc. (DCO - Free Report) . While Engility Holdings and Ducommun sport a Zacks Rank #1 (Strong Buy), General Dynamics carries a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>