Todd Shipyards Corporation Announces Quarterly Financial Results for October 3, 2004.

SEATTLE -- Todd Shipyards Corporation (NYSE:TOD) (the "Company") announced financial results for the second quarter ended October 3, 2004. In accordance with the Company's policy of ending its fiscal year on the Sunday nearest March 31, the Company's fiscal year 2005 will end on April 3, 2005 and include 53 weeks. Accordingly, the Company's quarter ending October 3, 2004 contains 14 weeks rather than the 13 week duration of the prior quarterly periods to which this year's second quarter results are compared.

For the quarter, the Company reported net income of $2.4 million or $0.43 per diluted share on revenue of $36.6 million. For the six month period then ended, the Company reported net income of $3.7 million or $0.65 per diluted share on revenue of $68.7 million. For the prior year second quarter ended September 28, 2003, the Company reported net income of $2.0 million or $0.35 per diluted share on revenue of $44.4 million. For the six month period then ended, the Company reported a net loss of $0.2 million or ($0.05) per diluted share on revenue of $65.6 million.

The Company's second quarter revenue of $36.6 million reflects a decrease of $7.8 million (17.6%) from the same period last fiscal year. The quarter-to-quarter decrease is primarily attributable to lower Navy volumes related to the transfer of AOE work to MSC, partially offset by increases in other Navy work, and lower volumes of US Coast Guard and commercial ship repair activity. Revenues for the first six months of fiscal year 2005 of $68.7 million reflect an increase of $3.1 million (4.8%) from fiscal year 2004 comparable periods. The increase in the first six months of fiscal year 2005 is attributable to higher Navy work volumes, partially offset by lower volumes of US Coast Guard and commercial ship repair activity.

For the quarter ended October 3, 2004, the Company reported operating income of $3.2 million. In the prior year quarter ended September 28, 2003, the Company reported operating income of $2.6 million. The increase in operating income for the second quarter of fiscal year 2005 from the second quarter of fiscal year 2004 is attributable to an increase in work for the Navy.

For the six month period then ended, the Company reported operating income of $4.9 million, an increase of $6.0 million from operating income reported during the comparable prior six month period. As previously reported, the increase in operating income during the first six months of fiscal year 2005 is attributable to two factors. First, the above mentioned increase in Navy work volumes. Second, the $2.5 million charge that was recorded in the first quarter of fiscal year 2004 related to the unanticipated bankruptcy of one of the Company's former workers compensation carriers.

For the second quarter and six month periods ending October 3, 2004, the Company reported net gains on the sale of available-for-sale securities, investment income and other income of $0.2 million and $0.4 million, respectively. During the same periods ending September 28, 2003, the Company reported net gains on the sale of available-for-sale securities, investment income and other income of $0.4 million and $0.7 million, respectively.

For the quarter ended October 3, 2004, the Company recorded $1.0 million in federal income tax expense. During the six month period then ended, the Company recorded $1.7 million in federal income tax expense. During the same periods ended September 28, 2003, the Company recorded $1.0 million in federal income tax expense and a $0.1 million in federal income tax benefit, respectively.

The results of operations are as follows:

TODD SHIPYARDS CORPORATION
          UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
         Periods ended October 3, 2004 and September 28, 2003
           (in thousands of dollars, except per share data)

                               Quarter Ended       Six Months Ended
                            10/03/04   09/28/03   10/03/04   09/28/03
                            ---------  ---------  ---------  ---------

Revenues                   $  36,620  $  44,433  $  68,715  $  65,571

Operating expenses:
 Cost of revenues             23,978     31,092     45,364     48,700
 Administrative and
  manufacturing
  overhead expenses            9,323     10,758     18,339     18,176
 Environmental reserve
  provision                      125          0        125          0
 Other - insurance
  settlements                    (38)       (36)       (54)      (204)
                            ---------  ---------  ---------  ---------
Total operating expenses      33,388     41,814     63,774     66,672

Operating income (loss)        3,232      2,619      4,941     (1,101)

Investment and other income      220        234        406        549
Gain on sales of
 available-for-sale
 securities                       (8)       168         (8)       186
                            ---------  ---------  ---------  ---------

Income (loss) before income
 taxes                         3,444      3,021      5,339       (366)
Income tax (expense)
 benefit                      (1,014)    (1,041)    (1,687)       126

Net income (loss)          $   2,430  $   1,980  $   3,652      ($240)
                            =========  =========  =========  =========

Net income (loss) per
 Common Share:
  Diluted                  $    0.43  $    0.35  $    0.65     ($0.05)
                            =========  =========  =========  =========
Number of shares used in
 the calculation of
 earnings per share
 (thousands)                   5,626      5,586      5,632      5,286
                            =========  =========  =========  =========

A copy of the Company's financial statements for the quarter and
six-months ended October 3, 2004 will be filed with the Securities &
Exchange Commission as part of its quarterly report on Form 10-Q. This
earnings report should be read in conjunction with the Company's Form
10-Q.


                      TODD SHIPYARDS CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                  October 3, 2004 and March 28, 2004
                       (in thousands of dollars)

                                                  10/03/04   03/28/04
                                                  ---------  ---------
                                                (Unaudited) (Audited)
ASSETS
Cash and cash equivalents                        $   5,542  $   1,328
Securities available-for-sale                       30,255     30,682
Accounts receivable, net                            11,180      7,630
Insurance receivable - current                      14,433     13,500
Other current assets                                11,142     17,690
                                                  ---------  ---------
Total Current Assets                                72,552     70,830

Property, plant and equipment, net                  27,255     28,244
Deferred pension asset                              28,642     28,725
Insurance receivable                                14,215     15,748
Other long-term assets                               3,771      4,355
                                                  ---------  ---------
Total Assets                                     $ 146,435  $ 147,902
                                                  =========  =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and
 accruals including taxes payable                $  13,386  $  17,012
Environmental and other reserves - current          14,433     13,500
Other current liabilities                            3,416      3,956
                                                  ---------  ---------
Total Current Liabilities                           31,235     34,468

Environmental and other reserves                    17,046     18,511
Accrued post retirement benefits                    15,545     15,791
Other non-current liabilities                        8,669      7,761
                                                  ---------  ---------
Total Liabilities                                   72,495     76,531

Total Stockholders' Equity                          73,940     71,371
Total Liabilities and                            ---------- ---------
 Stockholders' Equity                            $ 146,435  $ 147,902
                                                  =========  =========

A copy of the Company's financial statements for the quarter and
six-months ended October 3, 2004 will be filed with the Securities &
Exchange Commission as part of its quarterly report on Form 10-Q. This
earnings report should be read in conjunction with the Company's Form
10-Q.