Northrop Again Closes Shipyard, This Time for Hurricane Rita

Northrop Grumman Corp. closed its shipyard in New Orleans to allow employees to evacuate for Hurricane Rita, less than two weeks after work had resumed at the yard following Hurricane Katrina.

The Avondale yard was closed so that the 3,000 workers who had returned after Katrina could be evacuated again, Northrop spokesman Brian Cullin said Friday. The yard normally employs about 6,700 workers.

Northrop said it expected to resume work Monday at the New Orleans yard, which builds Navy amphibious assault ships and commercial oil tankers.

As many as 10,000 employees out of a total of 20,000 were back on the job this week at Avondale and two yards in Mississippi before Hurricane Rita forced the New Orleans yard to close, Cullin said. The Mississippi yards are on their normal schedule, he said.

Katrina-related delays will cut 2005 profit by 6 cents to 12 cents a share, Northrop said two weeks ago. The company had predicted it would earn $3.90 to $4 a share before Katrina hit.

Shares of the Century City-based defense contractor fell 11 cents to $53.74.