Description of Huntington Ingalls Industries Inc's Business Segments
Ingalls
Through our Ingalls operations, we design and construct non-nuclear ships for
the U.S. Navy and U.S. Coast Guard, including amphibious assault ships, surface
combatants, and National Security Cutters ("NSCs"). We are a supplier
of amphibious assault ships to the U.S. Navy and have built 28 of the 62 DDG-51
Arleigh Burke-class of Aegis guided missile destroyers in active service. We are
also the sole builder of the large multi-mission NSCs for the U.S. Coast Guard.
Our Ingalls shipbuilding site is located in Pascagoula, Mississippi. These facilities
offer a collection of manufacturing capabilities that include a 660-ton gantry
crane and a Land Based Test Facility.
In October 2014, we ceased shipbuilding construction operations at Avondale
and consolidated that activity at our Pascagoula, Mississippi, facility, which
we believe will enhance our competitive position by decreasing our fixed overhead
expenses, improving facility utilization to provide a more cost-efficient construction
process, centralizing our shipbuilding learning and increasing the benefits
of serial production, and reducing program costs. In July 2014, we closed our
Gulfport Composite Center of Excellence (the "Gulfport facility")
in Gulfport, Mississippi, due to limited demand from the U.S. Navy for composite
products provided by our Gulfport facility.
Amphibious Assault Ships
We are a supplier to the U.S. Navy of amphibious assault and expeditionary warfare
ships, which include the U.S. Navy large deck amphibious ships ("LHA"),
amphibious transport dock ships ("LPD"), and multi-purpose amphibious
assault ships ("LHD"). The LHA is a key component of the U.S. Navy-Marine
Corps requirement for 11 Expeditionary Strike Groups/Amphibious Readiness Groups,
and design, construction and modernization of LHAs are core to our Ingalls operations.
Construction of LHD-1 Wasp-class multipurpose amphibious assault ships concluded
with our delivery of LHD-8 USS Makin Island in 2009. In 2007, we were awarded
the construction contract for LHA-6 America, the first in a new class of enhanced
amphibious assault ships designed from the keel up to be an aviation optimized
Marine assault platform. We delivered LHA-6 America in the second quarter of
2014 and are currently constructing LHA-7 Tripoli, scheduled for delivery in
2018.
The LPD program is a long-running production program in which we have generated
efficiencies through ship-over-ship learning. We are currently constructing
two LPD-17 San Antonio-class amphibious transport dock ships, LPD-26 John P.
Murtha scheduled for delivery in 2016 and LPD-27 Portland scheduled for delivery
in 2017, in our Pascagoula shipyard. We delivered LPD-25 Somerset in 2013 and
LPD-23 Anchorage and LPD-24 Arlington in 2012.
Surface Combatants
We are a design agent for and one of only two companies that constructs the
DDG-51 Arleigh Burke-class guided missile destroyers. We have delivered 28 DDG-51
Arleigh Burke-class destroyers to the U.S. Navy, including DDG-110 USS William
P. Lawrence in February 2011. We are currently constructing DDG-113 John Finn
and DDG-114 Ralph Johnson, scheduled for delivery in 2016 and 2017, respectively.
In 2013, we were awarded a multi-year contract totaling $3.3 billion for construction
of five additional DDG-51 Arleigh Burke-class destroyers as a part of a larger
U.S. Navy order for nine DDG-51 Arleigh Burke-class destroyers. We began fabrication
on the first ship of that award, DDG-117 Paul Ignatius, in 2014, and it is scheduled
for delivery in 2018.
National Security Cutters
The U.S. Coast Guards recapitalization program is designed to replace aging
and operationally expensive ships and aircraft used to conduct missions in excess
of 50 miles from the shoreline. The flagship of this program is the Legend-class
NSC, a multi-mission platform we designed and built. The U.S. Coast Guard ordered
the first three NSC vessels from Integrated Coast Guard Systems ("ICGS"),
a joint venture between Lockheed Martin and us, pursuant to an Indefinite Delivery/Indefinite
Quantity ("IDIQ") contract for the Deepwater Modernization Program.
The first National Security Cutter, NSC-1 USCGC Bertholf, was delivered to the
U.S. Coast Guard in 2008, followed by NSC-2 USCGC Waesche in 2009 and NSC-3
USCGC Stratton in 2011. Beginning in 2010 with the construction contract for
NSC-4 USCGC Hamilton, the NSC contracts have been awarded directly to Ingalls.
Newport News
The capabilities of our Newport News operations extend from our core business
of designing and constructing nuclear-powered ships, such as aircraft carriers
and submarines, and the refueling and overhaul and the inactivation of such
ships, to businesses that are focused on the construction of heavy manufacturing
equipment for commercial nuclear power facilities and the operation, management
and cleanup of environmental hazard sites through Department of Energy ("DoE")
programs. Our Newport News shipyard is one of the largest shipyards in the United
States, located on approximately 550 acres near the mouth of the James River,
which adjoins the Chesapeake Bay. The shipyard has two miles of waterfront property
and heavy industrial facilities, which include seven graving docks, a floating
dry dock, two outfitting berths, five outfitting piers, module outfitting facilities
and various other workshops. Our Newport News shipyard also has a 2,170-foot
dry dock serviced by a 1,050-ton gantry crane capable of supporting two aircraft
carriers at one time.
Our DoE and commercial nuclear programs leverage our core competencies in nuclear
operations, program management and heavy manufacturing. We selectively partner
with experienced industry leaders, and we participate in active joint ventures.
Through our subsidiary, Stoller Newport News Nuclear, Inc. ("SN3"),
formerly The S.M. Stoller Corporation, we provide technical, environmental,
ecological, waste management, remediation and consultation services to private
sector companies and the DoE.
Energy
Newport News Industrial Corporation ("NNI") provides a range of support
services to commercial nuclear power plants. Since it was founded in 1965, NNI
has expanded its capabilities, continuing to provide support for nuclear energy
facilities, as well as for fossil power plants and other industrial facilities.
NNI focuses on fabrication services, construction services, equipment services,
technical services and product sales to its customers, which include both private
industry and government entities such as the DoE and the DoD.
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