Todd Shipyards Corporation Announces Quarterly Financial Results for October 2, 2005.

SEATTLE -- Todd Shipyards Corporation (the "Company") (NYSE:TOD) announced financial results for the second quarter ended October 2, 2005. In accordance with the Company's policy of ending its fiscal year on the Sunday nearest March 31, the Company's fiscal year 2005 ended on April 3, 2005 and included 53 weeks. Accordingly, the Company's quarter ending October 2, 2005 contains 13 weeks rather than the 14 week duration of the prior fiscal year's quarterly period to which this year's second quarter results are compared.

For the second quarter ended October 2, 2005, the Company reported net income of $4.4 million or $0.79 per diluted share on revenue of $70.8 million. For the six month period then ended, the Company reported net income of $6.9 million or $1.23 per diluted share on revenue of $137.6 million. For the prior year second quarter ended October 3, 2004, 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 income of $3.7 million or $0.65 per diluted share on revenue of $68.7 million.

The Company's second quarter revenue of $70.8 million reflects an increase of $34.1 million (93%) from the same period last fiscal year. The quarter-to-quarter increase largely results from increased work volumes, primarily attributable to work for the Navy on the USS STENNIS and work on submarines under contracts with Electric Boat ("EB"). Revenues for the first six months of fiscal year 2006 of $137.6 million reflect an increase of $68.9 million (100%) from fiscal year 2005 comparable periods. As for the second quarter, the increase in revenue in the first six months of fiscal year 2006 is primarily attributable to work for the Navy on the USS STENNIS and work on submarines under contracts with Electric Boat ("EB").

For the quarter ended October 2, 2005, the Company reported operating income of $6.4 million. In the prior year quarter ended October 3, 2004, the Company reported operating income of $3.2 million. The increase in operating income for the second quarter of fiscal year 2006 from the second quarter of fiscal year 2005 is attributable to an increase in work for the Navy and on submarines under contracts with EB.

For the six month period then ended, the Company reported operating income of $9.8 million, an increase of $4.8 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 2006 is attributable to an increase in work for the Navy and on submarines under contracts with EB.

For the second quarter and six month periods ending October 2, 2005, 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. During the same 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.

For the quarter ended October 2, 2005, the Company recorded $2.3 million in federal income tax expense. During the six month period then ended, the Company recorded $3.6 million in federal income tax expense. During the same periods ended October 3, 2004, the Company recorded $1.0 million and $1.7 million in federal income tax expense, respectively.

The results of operations are as follows:

TODD SHIPYARDS CORPORATION
              UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
           Periods ended October 2, 2005 and October 3, 2004
           (in thousands of dollars, except per share data)

                               Quarter Ended       Six Months Ended
                            10/02/05   10/03/04   10/02/05   10/03/04
                            ---------  ---------  ---------  ---------

Revenues                   $  70,761  $  36,620  $ 137,644  $  68,715

Operating expenses:
 Cost of revenue              53,269     23,978    103,104     45,364
 Administrative and
  manufacturing
  overhead expenses           11,212      9,323     24,885     18,339
 Environmental reserve
  provision                        -        125          -        125
 Other - insurance
  settlements                    (72)       (38)      (135)       (54)
                            ---------  ---------  ---------  ---------
Total operating expenses      64,409     33,388    127,854     63,774

Operating income               6,352      3,232      9,790      4,941

Investment and other income      376        220        661        406
Gain on sales of
  available-for-sale
  securities                       -         (8)        13         (8)
                            ---------  ---------  ---------  ---------

Income before income taxes     6,728      3,444     10,464      5,339

Income tax expense            (2,292)    (1,014)    (3,565)    (1,687)

Net income                 $   4,436  $   2,430  $   6,899  $   3,652
                            =========  =========  =========  =========

Net income per Common
 Share:
  Diluted                  $    0.79  $    0.43  $    1.23  $    0.65
                            =========  =========  =========  =========

Number of shares used in
 the calculation of earnings
 per share (thousands)         5,589      5,626      5,590      5,632
                            =========  =========  =========  =========

A copy of the Company's financial statements for the quarter and
six-months ended October 2, 2005 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 2, 2005 and April 3, 2005
                       (in thousands of dollars)

                                                    Period Ended
                                                  10/02/05   04/03/05
                                                  ---------  ---------
                                                (Unaudited) (Audited)
ASSETS
Cash and cash equivalents                        $  14,487  $   3,823
Securities available-for-sale                       35,323     34,964
Accounts receivable, net                            17,317     17,664
Insurance receivable - current                       8,992     14,328
Other current assets                                16,318     16,850
                                                  ---------  ---------
Total Current Assets                                92,437     87,629

Property, plant and equipment, net                  27,781     27,333
Deferred pension asset                              27,736     28,127
Insurance receivable                                 9,539      9,401
Other long-term assets                               4,554      3,961
                                                  ---------  ---------
Total Assets                                     $ 162,047  $ 156,451
                                                  =========  =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and
  accruals including taxes payable               $  27,301  $  22,430
Environmental and other reserves - current           9,296     14,328
Other current liabilities                            5,061      4,676
                                                  ---------  ---------
Total Current Liabilities                           41,658     41,434

Environmental and other reserves                    11,979     12,408
Accrued post retirement benefits                    14,667     14,957
Other non-current liabilities                        8,930      8,845
                                                  ---------  ---------
Total Liabilities                                   77,234     77,644

Total stockholders' equity                          84,813     78,807
                                                  ---------  ---------
Total liabilities and stockholders' equity       $ 162,047  $ 156,451
                                                  =========  =========

A copy of the Company's financial statements for the quarter and
six-months ended October 2, 2005 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.