Post by ferryfast admin on Feb 25, 2012 13:44:21 GMT -5
Austal gets $322M for next two JHSVs
Updated: Friday, February 24, 2012, 5:27 PM
Dan Murtaugh, Press-Register
blog.al.com/live/2012/02/austal_gets_322m_for_next_two.html
MOBILE, Alabama -- The U.S. Navy just exercised its options on its eighth and ninth joint high-speed vessels, awarding Austal USA $321.7 million to build the transport ships.
The Navy has one more option left on the deal it signed with Austal in 2008. The first ship in that contract, Spearhead, is nearly finished and floating in the water in front of Austal's Mobile River shipyard.
Ships eight and nine are not scheduled for delivery until the summer of 2015 and the winter of 2016.
The news came on Friday as Austal USA announced its earnings for the last half of 2011 period. The company’s revenue jumped to $240.8 million from $149.1 million over the same period the year before. However, its profit before tax fell from $13.3 million in the same months of 2010 to just $1 million in that period for 2011.
The company blamed the margin deterioration on "first-in-class" problems with the JHSV ship program and the inexperience of new workers as it ramped up its military production.
Austal is Mobile's largest industrial employer, with more than 2,600 employees. The company is expanding its workforce to 4,000 by the end of next year to build the JHSVs and littoral combat ships it has under contract with the Navy.
JHSVs are 338 feet long, weigh 727 tons, can carry up to 600 tons of cargo and travel at an average speed of about 35 knots, or 40 mph. The ships will be used to move troops, weapons or cargo, but are not designed as combat vessels.
These newest JHSVs could be among the last Austal builds. The Navy in the past had planned to purchase 21 of the lightly armed transport ships, and Austal would have been well positioned for future contracts.
But earlier this year, U.S. Defense Secretary Leon Panetta introduced budget cuts that, among other things, would basically kill the JHSV program after the first 10.
Austal USA President Joe Rella has said that he is confident that once the ships get into service, the Navy will see their value and roll them back into their shipbuilding plan. In addition, he said, Austal is courting foreign militaries to keep the program running into the future.
Rella could not be reached for comment immediately today.
Updated: Friday, February 24, 2012, 5:27 PM
Dan Murtaugh, Press-Register
blog.al.com/live/2012/02/austal_gets_322m_for_next_two.html
MOBILE, Alabama -- The U.S. Navy just exercised its options on its eighth and ninth joint high-speed vessels, awarding Austal USA $321.7 million to build the transport ships.
The Navy has one more option left on the deal it signed with Austal in 2008. The first ship in that contract, Spearhead, is nearly finished and floating in the water in front of Austal's Mobile River shipyard.
Ships eight and nine are not scheduled for delivery until the summer of 2015 and the winter of 2016.
The news came on Friday as Austal USA announced its earnings for the last half of 2011 period. The company’s revenue jumped to $240.8 million from $149.1 million over the same period the year before. However, its profit before tax fell from $13.3 million in the same months of 2010 to just $1 million in that period for 2011.
The company blamed the margin deterioration on "first-in-class" problems with the JHSV ship program and the inexperience of new workers as it ramped up its military production.
Austal is Mobile's largest industrial employer, with more than 2,600 employees. The company is expanding its workforce to 4,000 by the end of next year to build the JHSVs and littoral combat ships it has under contract with the Navy.
JHSVs are 338 feet long, weigh 727 tons, can carry up to 600 tons of cargo and travel at an average speed of about 35 knots, or 40 mph. The ships will be used to move troops, weapons or cargo, but are not designed as combat vessels.
These newest JHSVs could be among the last Austal builds. The Navy in the past had planned to purchase 21 of the lightly armed transport ships, and Austal would have been well positioned for future contracts.
But earlier this year, U.S. Defense Secretary Leon Panetta introduced budget cuts that, among other things, would basically kill the JHSV program after the first 10.
Austal USA President Joe Rella has said that he is confident that once the ships get into service, the Navy will see their value and roll them back into their shipbuilding plan. In addition, he said, Austal is courting foreign militaries to keep the program running into the future.
Rella could not be reached for comment immediately today.