SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 2, 1999
NEWPORT NEWS SHIPBUILDING INC.
(Exact name of registrant as specified in its charter)
Delaware 1-12385 74-1541566
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
4101 Washington Avenue, Newport News, VA 23607
(Address of principal executive offices) (zip code)
(757) 380-2000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
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Item 5. Other Events
Local 8888 of the United Steelworkers of America, representing the
Company's hourly production and maintenance employees, held a voice vote on
April 1 supporting a strike. Unless an agreement is reached or the current
contract is extended, there is the possibility of a strike effective Monday,
April 5.
While the Company is committed to reaching a new labor agreement, the
possibility of a lengthy strike does exist. Newport News is prepared for this
possibility and anticipates limited impact to its financial performance. The
Company's progress on current construction, fleet services, and engineering
contracts will continue to be achieved mostly through the use of salaried labor
and the procurement of material. Furthermore, cash flow and key financial ratios
are not expected to be materially impacted.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99.1 Press Release
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NEWPORT NEWS SHIPBUILDING INC.
Date: April 2, 1999 By: /s/ Peter A.V. Huegel
--------------------------------
Name: Peter A.V. Huegel
Title: Assistant Secretary
<PAGE>
Exhibit Index
Exhibit No. Description of Exhibit Sequential Page Number
Exhibit 99.1 Press Release 4
Exhibit 99
[NEWPORT NEWS SHIPBUILDING LOGO] LABOR UPDATE
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CONTACT: Investors: Joe Fernandes Media: Jerri Dickseski
(757) 688-6400 (757) 380-2341
NEWPORT NEWS SHIPBUILDING LABOR UPDATE
o Newport News' labor agreement expires April 4; potential for strike.
o Newport News offers competitive multi-year labor agreement.
o Financial impact of strike anticipated to be limited.
NEWPORT NEWS, Va., April 2, 1999--Newport News Shipbuilding (NYSE: NNS)
reported today that Local 8888 of the United Steelworkers of America,
representing hourly production and maintenance employees, held a voice vote on
April 1 supporting a strike. Unless an agreement is reached or the current
contract is extended, there is the possibility of a strike effective Monday,
April 5.
As background, Newport News and the United Steelworkers of America have
been in negotiations for the past two months in anticipation of the existing
labor contract's expiration. Newport News has made a final offer to its
production and maintenance employees that it believes is highly competitive
within the shipbuilding industry. The Company's offer provides an immediate wage
increase of up to 7 percent, followed by additional increases of 3 percent and 4
percent over the proposed 47-month contract. Newport News has also proposed
enhancements in labor rate progressions and pension benefits, and to share
medical insurance cost increases over the contract period.
While the Company is committed to reaching a new labor agreement, the
possibility of a lengthy strike does exist. Newport News is prepared for this
possibility and anticipates limited impact to its financial performance. The
Company's progress on current construction, fleet services, and engineering
contracts will continue to be achieved mostly through the use of salaried
labor and the procurement of material. Furthermore, cash flow and key
financial ratios are not expected to be materially impacted.
Newport News Shipbuilding designs and constructs nuclear powered aircraft
carriers and submarines for the U.S. Navy and provides lifecycle services
for ships in the Navy fleet. The company employs more than 18,000 people, and
has revenues of approximately $1.8 billion.
