TODD SHIPYARDS CORPORATION 

ANNOUNCES QUARTERLY FINANCIAL RESULTS FOR 

DECEMBER 30, 2007

VIA FACSIMILE
CONTACT: HILARY PICKEREL
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SHAREHOLDER RELATIONS 
(206) 623-1635 Ext. 106

SEATTLE, WASHINGTON...February 06, 2008...Todd Shipyards Corporation (NYSE:TOD) announced financial results for the third quarter ended December 30, 2007.  For the quarter, we reported net income of $2.9 million or $0.50 per diluted share on revenue of $39.1 million.  For the prior year third quarter ended December 31, 2006, we reported net income of $2.4 million or $0.43 per diluted share on revenue of $44.2 million.

Our third quarter revenue of $39.1 million reflects a decrease of $5.1 million or 11% from the same period last fiscal year.  The quarter to quarter decrease largely results from lower ship repair and new construction volumes. 

For the quarter ended December 30, 2007, we reported operating income of $3.5 million.  In the prior year quarter ended December 31, 2006, we reported operating income of $2.7 million.  The increase in operating income in the third quarter of fiscal 2008 versus the third quarter of the prior year primarily results from a year-on-year decrease in the share of total work volumes executed under fixed price contracts, which were characterized by higher costs as a percentage of revenue, and cost increases on certain fixed price projects.

We reported investment and other income of $0.8 million and $1.1 million for the quarters ended December 30, 2007 and December 31, 2006, respectively.

For the third quarter ended December 30, 2007, we reported income before income taxes of $4.3 million and recorded $1.4 million of federal income tax expense, resulting in net income for the period of $2.9 million.  For the prior year third quarter ended December 31, 2006, we reported income before income taxes of $3.7 million and recorded $1.3 million in federal income tax expense, resulting in net income reported for the period of $2.4 million.
**Year to Date Results**
For the nine months ended December 30, 2007, we reported net income of $3.0 million or $0.54 per diluted share on revenue of $102.8 million.  For the prior year nine months ended December 31, 2006, we reported net income of $1.9 million or $0.33 per diluted share on revenue of $80.8 million.

Year to date revenue of $102.8 million reflects a $22.1 million, or 27% increase from the same period in the last fiscal year.  The year on year increase largely results from higher ship repair and new construction volumes on a range of projects, including USS John C. Stennis, USCGC Polar Sea, NOAA Okeanos Explorer, Excavator Barge, USNS Flint and USNS Salvor. 

For the nine months ended December 30, 2007, we reported operating income of $1.5 million which reflects a $1.1 million increase versus the same period in the prior fiscal year.  The increase in operating income in the current year is driven by the increased ship repair and new construction volumes discussed above and lower costs as a percentage of revenue versus the prior year.

Investment and other income for the first nine months of fiscal year 2008 was $3.1 million, an increase of $1.0 million vesus the same period in the prior fiscal year which was primarily due to increased activity under an agreement under which we are leasing certain facilities and providing related services to Kiewit-General in connection with their construction of the Hood Canal Floating Bridge.

For the nine months ended December 30, 2007, we reported income before income taxes of $4.6 million and recorded federal income tax expense of $1.5 million, resulting in net income for the period of $3.0 million.  For the same period in the prior year, we reported income before income taxes of $2.9 million and federal income tax expense of $1.0 million, resulting in net income reported for the period of $1.9 million.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Statements contained in this Release which are not historical facts or information are "forward-looking statements."  Words such as "believe," "expect," "intend," "will," "should," and other expressions that indicate future events and trends identify such forward-looking statements.  These forward-looking statements involve risks and uncertainties, which could cause the outcome to be materially different than stated.  Such risks and uncertainties include matters which relate directly to the Company's operations and properties and are discussed in the Company's filings with the Securities & Exchange Commission, as well as general economic risks and uncertainties.  The Company cautions that any forward-looking statement reflects only the belief of the Company or its management at the time the statement was made.  Although the Company believes such forward-looking statements are based upon reasonable assumptions, such assumptions may ultimately prove to be inaccurate or incomplete.  The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement was made.

 

The results of operations are as follows:
**TODD SHIPYARDS CORPORATION**