UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Commission File Number 1-5109
TODD SHIPYARDS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 91-1506719
(State or other jurisdiction of (IRS Employer I.D. No.)
incorporation or organization)
1801- 16th AVENUE SW, SEATTLE, WASHINGTON 98134-1089
(Street address of principal executive offices - Zip Code)
Registrant's telephone number: (206) 623-1635
Item 5. Other Events
On April 28, 1997 the Company issued a press release stating
that it expects to incur approximately $14 million of
increased costs on its contract to construct three Mark II
Ferries for the Washington State Ferries System.
Item 7. Financial Statements and Exhibits
(c) Exhibits
28-1 Press Release dated April 28, 1997.
SIGNATURES
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 hereunto duly
authorized.
Dated: April 28, 1997.
/s/ Michael G. Marsh
By: Michael G. Marsh
On Behalf of the Registrant as
Secretary and General Counsel
VIA FACSIMILE CONTACT: MAJA LARSON
TOTAL PAGES - 1 SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 108
SEATTLE, WASHINGTON ... April 28, 1997 ... Todd Shipyards
Corporation (the "Company") reported today that it expects to
incur approximately $14 million of increased costs on its
contract to construct three Mark II Ferries for the Washington
State Ferries System. This increase in expected Mark II costs,
which includes direct labor and material expense and allocated
manufacturing overhead expenses, is expected to result in the
reversal of $2.4 million of previously recognized program profit
and the establishment of a program loss reserve of approximately
$9.5 million in the Company's fourth quarter ending March 30,
1997.
As construction of the Mark II Ferries progresses, the Company
reviews and revises its estimates of long term contract sales
values and costs at completion. The Company has completed its
year-end review of the Mark II Ferry project, resulting in the
reduction to the cumulative profit and establishment of the loss
reserve mentioned above. In addition to previously disclosed
steel work overruns, costs on the project have increased due to
higher than forecasted labor hours required to complete the first
ship, the MV Tacoma. The estimated cost at completion presumes
that a significant portion of increased MV Tacoma costs will
recur in subsequent ships. In addition, the increase in MV
Tacoma work hours has been a factor in the delay to the ship's
scheduled delivery from April 1997 to June 1997.
Construction efforts on the second ferry, the MV Wenatchee, and
the third ferry, the MV Puyallup, are currently underway. The
launch of the MV Wenatchee is scheduled for August 1997, with
delivery scheduled for the fourth quarter of the Company's fiscal
year 1998. As work on the project continues changes to the
Company's estimates may be made as a result of productivity
factors, overhead costs, material costs, production schedules and
levels of shipyard activity.
