Improved Sales And Earnings Reported By Todd Shipyards—Has $1,5-Billion Backlog
Todd Shipyards Corporation has reported improved sales and earnings f o r the first quarter ended June 29, 1980. Todd currently has a backlog of $1.5 billion, and a good earnings trend is expected to continue, the company reported.
At its Annual Shareholders Meeting, held in New York recently, John T. Gilbride, chairman and chief executive officer, said that estimated sales for the quarter totaled $147.6 million, a 23- percent increase over $119.9 million the year before. Net income rose 31 percent to approximately $6.5 million, or $1.63 per share, compared with $5 million, or $1.90 per share, in 1979 which included an extraordinary item of $951,000, or $.43 per share, from the sale of land.
Income per share in the first quarter of 1980 was reduced compared with the same three months in 1979 by the dilutive effect of the sale of 600,000 shares of common stock and $25 million of 10y2 percent convertible subordinated debentures (602,410 common share equivalents) sold in December 1979 and March 1980, respectively. The Todd chairman told shareholders that several national issues should be considered crucial to the future of this nation. Citing increased U.S. dependence on foreign trade and raw materials, Mr. Gilbride said our nation is already involved in "a new kind of conflict: a non-shooting competion for the world's raw material resources. The antagonists are the free world and the Communist world, and the struggle is for survival." Soviet strategy has been to build up its seap'ower to be capable of challenging Western naval control of the sea lanes and disrupting the flow of materials from third world countries by political and military pressure, he contended.
Mr. Gilbride pointed out that maintenance of a healthy shipbuilding capability and a significant expansion of the U.S. Naval and maritime f l e e t are both achievable and desirable, at acceptable bottom line returns to the U.S. Treasury. "The U.S. shipbuilding industry is capable of supporting and implementing any Government policy aimed at strengthening our country's seapower, but we can no longer do it on a stop-and-start basis. We urgently need a firm decision in Washington to reverse the present trend of declining maritime strength by funding a U.S. merchant and Naval fleet of unques unquestioned superiority," Mr. Gilbride concluded.
Todd Shipyards Corporation, the nation's largest independent shipbuilding company, operates shipyards on three coasts in Los Angeles, Seattle, San Francisco, New Orleans, Galveston, Houston and Brooklyn. It is presently engaged in the construction of 23 guided missile frigates (FFGs) for the U.S. Navy.