It's been barely a month since shipbuilder Huntington Ingalls Industries (NYSE:HII) landed its $487 million contract to build the sixth National Security Cutter (NSC), the Munro, for the U.S. Coast Guard -- and already it's time to start work on the seventh.
On Friday, the Ingalls Shipbuilding division announced that it has won a $76.8 million fixed-price contract from the Coast Guard to begin purchasing "long-lead materials" needed to build the Kimball NSC. Specific items on Ingalls' shopping list include steel, engines, generators, electrical switchboards, and major castings.
As Ingalls NSC program manager Jim French explained in a statement: "Advance procurement funding helps us procure equipment and materials at favorable prices from our suppliers, and it keeps their production line flowing as well."
So far, Huntington has delivered three NSCs to the Coast Guard, is about 40% through construction of a fourth, and 17% through a fifth. Construction of the sixth, the Munro, is slated to begin later this year.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Huntington Ingalls Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.