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US Navy Picks Projects For $140 Million In Storm Funds January 25, 2007

Posted by notapundit in Military News, US News.

WASHINGTON (Dow Jones)–The U.S. Navy this week announced a slate of shipyard projects to receive $140 million in hurricane relief funding, part of an emergency spending bill passed in the aftermath of 2005’s Hurricane Katrina.

Northrop Grumman Corp. (NOC) is expected to receive the lion’s share of the funding for its shipyards in Louisiana and Mississippi. The company sought federal funds last year, saying it needed help rebuilding while it argued with its insurance company over what storm damage would be covered.

Textron Inc. (TXT) is another selected recipient. In an earnings call this week, the company said it expected $28 million in Hurricane Katrina cost recovery during the first quarter. This figure is included in its 2007 guidance, Chief Financial Officer Ted French said.

The Navy’s list of chosen companies includes Northrop Grumman, Textron and four other Gulf Coast shipbuilders. The Navy didn’t provide project specifics, however, saying only that it evaluated 18 proposals from seven shipyards before making its choices.

The Navy now will enter into detailed negotiations with the selected shipyards on the chosen projects, a Navy spokesman said.

Lawmakers hailed the project selection, saying it would give the region a needed boost during ongoing recovery from the storms.

“This funding will enable our area’s shipyards to continue to improve efficiency and benefit both the United States Navy and the taxpayer,” said U.S. Rep. Jo Bonner, R-Ala.

Northrop Grumman’s eligible shipyards are located in Pascagoula, Miss.; Gulfport, Miss.; and New Orleans. The other shipbuilders selected to receive some of the Navy’s $140 million in hurricane funding are:

-privately held Atlantic Marine Inc. in Mobile, Ala.

-Austal USA in Mobile, part of Australian shipbuilder Austal Ltd. (ASB.AU)

-Seemann Composites Inc. in Gulfport

-Swiftships in Morgan City, La., which is part of Swift Group LLC, and

-Textron’s Marine and Land Systems unit in New Orleans.

By Rebecca Christie, Dow Jones Newswires


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