Huntington Ingalls (HII) Wins $3B Navy Contract For LHA 8
Zacks Investment Research | Jun 18, 2017 09:13PM ET
Huntington Ingalls Industries, Inc. (NYSE:HII) has clinched a modification contract from the U.S. Navy to procure the detail, design, and construction of the Landing Helicopter Assault (LHA) Replacement (LHA(R)) Flight 1 Amphibious Assault Ship (LHA 8). The contract is valued at $3 billion.
Work is scheduled to be completed by Jan 2024. Majority of the work will be performed in Pascagoula, MI, while the rest will be executed in various other locations in the U.S. It will use fiscal 2016 and 2017 shipbuilding and conversion (Navy) funds.
About the Amphibious Assault Ship & LHA
The amphibious assault ship is a kind of commando carrier used to land and support ground forces on enemy territory. These ships were developed by transforming aircraft carriers into helicopter carriers and they incorporate support for amphibious landing craft.
The largest fleet of such ships is operated by the U.S. Navy, which specifically includes large-deck amphibious ships such as the Landing Platform Helicopter (LPH), Landing Helicopter Assault (LHA), and Landing Helicopter Dock (LHD).
LHA is the hull classification symbol of the Navy for the Tarawa and America classes of normal helicopter-carrying amphibious assault ships. These ships transport Fleet Marine Force personnel and equipment, while operating in a deployed Marine Expeditionary Unit.
Huntington Ingalls - A Key Defense Operator
Huntington Ingalls is the prime industrial employer in Virginia. Notably, over 70% of the active Navy fleet comprises Huntington Ingalls ships. Its Ingalls Shipbuilding segment is the sole manufacturer of amphibious assault ships for the Navy.
Huntington Ingalls is the only builder of National Security Cutters ("NSCs") for the U.S. Coast Guard and one of only two companies that build the DDG-51 Arleigh Burke-class destroyers. The other producer of these destroyers is General Dynamics Corp. (NYSE:GD) .
We expect the growth momentum for Huntington Ingalls to continue in the days ahead, given the recent positive budget revision. The shipbuilding business outlook remains strong, particularly in light of the fiscal 2017 spending bill. The bill includes Ohio-Class replacement, advanced procurement for refueling CVN-74, advanced procurement for CVN-80, two Virginia class submarines, two DDG-51s, advanced procurement for LHA-8 and TAO(X), continuation of CVN-79, and investment in a new Coast Guard Icebreaker.
Price Movement
Shares of Huntington Ingalls have rallied 15.7% in the last one year, underperforming the Zacks categorized Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.