HII CEO Notes Opportunities With US Navy Renewed Focus on Readiness

The US Navy is looking to increase readiness, particularly in its submarine force, and the maintenance needs at government yards could create a capacity crunch and therefore opportunity for private yards, according to Michael Petters, CEO of Huntington Ingalls Industries, whose Newport News Shipbuilding shipyard is one of the nation’s two nuclear...

The US Navy is looking to increase readiness, particularly in its submarine force, and the maintenance needs at government yards could create a capacity crunch and therefore opportunity for private yards, according to Michael Petters, CEO of Huntington Ingalls Industries, whose Newport News Shipbuilding shipyard is one of the nation’s two nuclear submarine shipbuilders.

“There is no doubt that the navy today is rethinking its overall approach to readiness and how do they get more readiness for the dollar,” Petters told investment analysts on 1 August during a conference call detailing quarterly earnings.

“The government yards and the government activities there are a primary source of providing that readiness, and when there is overflow or where there are dynamics that go beyond that capacity, it moves to the private sector, which means that the private sector fluctuates a lot more than readiness budgets in general,” Petters noted.

Source: www.janes.com