Northrop Grumman wins $171M US Navy contract

AP News
Posted: Dec 02, 2009 6:34 PM

Northrop Grumman Corp. said Wednesday it has won a $171 million contract from the U.S. Navy to provide parts used in the construction of Aegis-class DDG destroyers.

Last April, the Navy announced Northrop Grumman would be awarded contracts for the first two destroyers in the DDG 51 program continuation. The company has delivered 26 of 28 ships, with two more ships currently under construction in Pascagoula, Miss.

The company said it would use the funds to buy major equipment for the new DDG 113 ship, including propulsion engines, gas turbine generators, propellers and air conditioning systems. The work will be performed at the company's Pascagoula shipyard and the award of the construction contract is expected in 2010.

Northrup shares rose 23 cents to $55.50 in after-hours trading Wednesday, after closing up a penny at $55.27.