Todd Shipyards Q1 revenue jumps 90 percent
Todd Shipyards Corp. reported first-quarter net income of $1.5 million, or 26 cents per diluted share, which compares with a loss of $1.3 million, or a loss of 23 cents per share a year earlier.
Revenue rose to $34.6 million from $18.2 million in 2008.
Officials at the Seattle shipyard (NYSE: TOD) said that the large increase in revenues stems from higher volumes of ship repair and new construction activity for government and commercial customers. Earnings were affected in the first quarter, they added, by lower U.S. Navy repair volumes, such as no aircraft carrier availability in fiscal 2009 due to timing of deployments, and lower new construction volumes.
The company also established a $3.1 million reserve related to subcontractor costs incurred during the 2005 project on the Navy aircraft carrier John C. Stennis. The U.S. Defense Contract Audit Agency (DCAA) questions a payment made to a Todd subcontractor regarding work done on the Stennis. The Navy and DCAA said some of the costs are “unallowable.”
Revenue rose to $34.6 million from $18.2 million in 2008.
Officials at the Seattle shipyard (NYSE: TOD) said that the large increase in revenues stems from higher volumes of ship repair and new construction activity for government and commercial customers. Earnings were affected in the first quarter, they added, by lower U.S. Navy repair volumes, such as no aircraft carrier availability in fiscal 2009 due to timing of deployments, and lower new construction volumes.
The company also established a $3.1 million reserve related to subcontractor costs incurred during the 2005 project on the Navy aircraft carrier John C. Stennis. The U.S. Defense Contract Audit Agency (DCAA) questions a payment made to a Todd subcontractor regarding work done on the Stennis. The Navy and DCAA said some of the costs are “unallowable.”