Litton Over Budget, Behind Schedule on Ship

Litton Industries Inc., the U.S. Navy’s third-biggest shipbuilder, is about 30% over budget and 10 months behind schedule in building an amphibious warfare ship for the U.S. Marine Corps, according to government program documents and officials. The overrun on the first of 12 new San Antonio class vessels could cost the Woodland Hills-based company part of the $60 million available in performance bonuses, or so-called award fees. The new ship, called the LPD-17, is estimated to cost $802 million--$185 million more than its $617-million target cost. The Navy touts the $10-billion program as a model of cutting-edge technology that promises major cost savings over 20 years. Cost overruns on Navy helicopter and cruiser programs forced Litton Industries to warn that its fiscal second-quarter profit will be below forecasts. Litton will report its second-quarter earnings today. Shares were unchanged at $29.94 on the NYSE.