The company had said it would do so if MARAD decided not to continue guaranteeing loans for the two 1,900-passenger newbuilds at Ingalls in Pascagoula.
Northrop Grumman said operating margin for the quarter would drop to $225m from $285m. The company previously reported Q3 earnings of $161m ($1.79 per share), now revised to $121m ($1.33 per share). Under GAAP, Northrop Grumman first reported Q3 net income of $117m ($1.28 per share), now revised to $79m (84 cents per share).
Some 1,250 employees working on Project America were affected by temporary layoffs last week. About 500 are immediately being reassigned to other ongoing projects at Ingalls, while another 200 will be transferred to Avondale in Gulfport, Mississippi. Most of the remaining employees affected will be reassigned to Avondale facilities in New Orleans.