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):
March 3, 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
Newport News Shipbuilding Inc. (NNS) and Science Applications International
Corporation (SAIC) have agreed to form a limited liability company (LLC)
offering a range of fleet services to the U.S. Navy. NNS will own 45 percent of
the LLC and SAIC will own 55 percent. The new company will be named AMSEC LLC.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99.1 Press Release
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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: March 5, 1999 By: /s/ Peter A.V. Huegel
--------------------------------
Name: Peter A.V. Huegel
Title: Assistant Secretary
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Exhibit Index
Exhibit No. Description of Exhibit Sequential Page Number
Exhibit 99.1 Press Release 4
Ex-99.1
PRESS RELEASE
NEWPORT NEWS
SHIPBUILDING NEWS RELEASE
CONTACTS: Investors Media
Dave Anderson Jerri Fuller Dickseski
(757) 380-7600 (757) 380-2341
NNS AND SAIC TO FORM WORLDWIDE PARTNERSHIP
FOR U.S. NAVY FLEET SERVICES
> A new company, AMSEC LLC, with 1,500 employees and worldwide service from
20 locations to include every major U.S. Navy port.
> Contribution of resources from NNS and SAIC to deliver a broad range of low
cost fleet technical services
> Commitment to grow the business partnership through further alliances and
acquisitions.
NEWPORT NEWS, Va., March 3, 1999--Newport News Shipbuilding (NNS) and
Science Applications International Corporation (SAIC) today announced their
formation of a worldwide business partnership in the form of a limited liability
company (LLC) offering a range of competitively priced fleet services to the
U.S. Navy. The new company will be named AMSEC LLC.
The business partnership's headquarters will be in Virginia Beach, Va.,
providing worldwide service from 20 locations to include every major U.S. Navy
port. The new company will become operational during the second quarter of this
year and will initially employ approximately 1,500 current AMSEC and Newport
News Shipbuilding employees with anticipated 1999 sales of $130 million. NNS
will own 45 percent of the LLC and SAIC will own 55 percent.
The partnership will combine all of the operations of SAIC's subsidiary,
AMSEC, with NNS' life cycle engineering and logistics businesses. Newport News
has also agreed to use AMSEC LLC to complement its engineering resources. The
combination will create a low cost fleet services organization capable of
providing logistics and life cycle services for aircraft carriers, submarines,
surface combatants, amphibious and auxiliary ships around the world.
"The partnership with SAIC is another big step forward in our strategy to
significantly grow fleet services," said William P. Fricks, Chairman and Chief
Executive Officer of Newport News Shipbuilding. "The combination represents the
most technologically capable and low cost solution for the U.S. Navy's active
fleet. These services are increasingly important given the Navy's budget
constraints and its aging fleet," said Fricks. "Furthermore, with the financial
resources of NNS and SAIC behind it, AMSEC LLC will pursue acquisitions to
further expand its inventory of products and services for the Navy's active
fleet," he added.
This announcement follows Newport News' acquisition of San Diego-based
Continental Maritime Industries in December 1997 and its recently announced
plans to merge with Avondale Industries of New Orleans, La. The business
partnership will add to and strengthen NNS' strategic presence on the East, West
and Gulf Coasts of the United States.
Dr. J. Robert Beyster, SAIC's Chairman and Chief Executive Officer, said,
"At SAIC, we are greatly looking forward to working with Newport News
Shipbuilding in this innovative business partnership. By combining NNS'
Integrated Logistics Support (ILS) capability with AMSEC's total ship systems
engineering and technical services, we have created the most cost effective,
full service, platform life cycle support organization for the U.S. Navy."
Carl Albero, founder and CEO of AMSEC will be President and CEO of the new
company. He will also serve as Chairman of AMSEC LLC's Board of Directors.
Through Albero's leadership, AMSEC has grown from a start-up company in 1981 to
become a leader in technical services for the U.S. Navy fleet. "The new
structure we have established with AMSEC LLC is a seamless transition for
employees and customers with a broader product line and lower cost," said
Albero.
Newport News Shipbuilding (NYSE: NNS) designs and constructs nuclear
powered aircraft carriers and submarines for the U.S. Navy and provides life
cycle services for ships in the Navy fleet. The company employs 18,000 people
and has annual revenues of approximately $1.8 billion. More information about
Newport News Shipbuilding can be found on the Internet at (www.nns.com).
SAIC is the nation's largest employee-owned high-technology company,
providing information technology and systems integration products and services
to government and commercial customers. SAIC scientists and engineers work to
solve complex technical problems in telecommunications, national security,
health care, transportation, energy and the environment. With estimated annual
revenues in excess of $4 billion, SAIC and its subsidiaries, including Bellcore,
have more than 35,000 employees at offices in more than 150 cities worldwide.
More information about SAIC can be found at (www.saic.com) or by calling Jane
Van Ryan at SAIC at (703) 734-4097.
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NNS/SAIC Business Partnership
Summary
Strategic Rationale: Business partnership will grow fleet services
business by broadening its offering of fleet
technical services at a lower cost and
providing worldwide service from 20 locations.
1999 Revenues: $130 million (1998 revenues=$110 million)
Company Name: AMSEC LLC
Headquarters: Virginia Beach, VA
Locations: Worldwide service from 20 locations to include:
o Virginia: Virginia Beach, Newport News,
Norfolk, McLean, Arlington and Dahlgren
o California: San Diego, Oxnard and Walnut
Hill
o Washington: Bremerton, Everett and Keyport
o Hawaii: Pearl Harbor, Oahu and Kauai
o Florida: Mayport
o South Carolina: Charleston
o Alabama: Mobile and Huntsville
Employees: 1,500 (AMSEC=1,200 and NNS=300)
Structure: Limited Liability Company (LLC)
Ownership: NNS=45%, SAIC=55%
Management: Carl Albero, founder, CEO and Chairman of
AMSEC will become Chairman and CEO of the new
company. AMSEC and former NNS managers will
comprise the management team.
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