Navy Nixes More Pricey Destroyers

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In a cost-cutting move, the U.S. Navy has decided to scale back construction of the Zumwalt-class destroyers, which are built by Los Angeles-based Northrop Grumman Corp. and General Dynamics Corp.


The Navy’s original plan called for building seven of the ships, which Northrop and General Dynamics said would cost $3.3 billion each. The Navy will instead build only two. But the Congressional Budget Office estimates a price of $5 billion each.


The Navy will instead propose building eight more of the existing DDG-51 class of destroyers, Bloomberg reports. Northrop is the prime contractor for the DDG-51 as well.


A Northrop spokesman could not be reached for comment. Shares in Northrop closed up 2.7 percent to $68.63 Friday.

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