Bath Iron Works gets $1.4b Navy destroyer contract

The Defense Department has awarded contracts worth $1.4 billion each to Bath Iron Works, a unit of General Dynamics Corp., and to Northrop Grumman Corp. to build two new Naval destroyers. The DDG 1000 Zumwalt-class attack ships will be the lead vessels in a class of new Naval destroyers. The ships will cost roughly $2.4 billion each once they are fully loaded with radar, combat systems, and guns, said John Young, undersecretary of defense for acquisition, technology, and logistics. Northrop Grumman and Bath Iron Works will each build one of the ships based on the same design. Bath Iron Works will complete most of its work in Bath, Maine, and is expected to deliver the first ship in 2012. (AP)

A Dartmouth couple was convicted Wednesday for evading millions of dollars in taxes and workers' compensation premiums in what federal prosectors said is the largest under-the-table payroll scheme ever prosecuted in Massachusetts. Daniel W. and Aimee J. King McElroy, convicted after a 2 1/2-week trial in federal court in Boston, face more than 100 months in prison and repaying some $17 million in back taxes and workers' compensation premiums, according to US Attorney Michael J. Sullivan. Sentencing is scheduled for May 21. From the early 1990s until June 2001, the McElroys operated a temporary employment agency under various names, paying more than $43 million in cash to workers to avoid employment taxes and workers' compensation premiums, the US attorney said. The McElroy's attorney said his clients "were disappointed with the verdict" but "we hope to vindicate them on appeal." (Robert Gavin)

The Nigerian Federal High Court refused to dismiss a lawsuit against the One Laptop Per Child Foundation of Cambridge. Lagos Analysis Corp. (Lancor) of Natick sued the foundation in a Nigerian court last year, claiming the keyboard of the foundation's XO low-cost laptop violates a Lancor patent in Nigeria. Meanwhile, the foundation says Lancor has threatened to sue it in the United States. To prevent this, OLPC has asked a Middlesex Superior Court judge to issue a declaratory judgment that the foundation has not violated Lancor's intellectual property rights. (Hiawatha Bray)

Fidelity Investments said two indicators of its retirement-savings business both rose 8 percent last year, which it called strong growth in a key emerging market. For 2007, Fidelity said one class of assets at its defined-contribution services business rose to $851.4 billion. Fidelity describes these assets as "record kept," meaning it provides administrative services to individual savers. Also, Fidelity said its total assets under administration for the retirement-services business rose to $918.4 billion. For all of 2007, Fidelity said it added nearly 524,000 defined-contribution plan participants, finishing the year with 13.6 million. (Ross Kerber)

The New York Times is cutting 100 jobs from its newsroom this year as financial pressures mount from a weak economy and competition from the Internet. Executive editor Bill Keller told employees the cuts would come mainly through attrition and buyouts, but layoffs were possible. Spokeswoman Catherine Mathis said the paper has a total of 1,332 newsroom employees, which would make the cutbacks nearly 8 percent of the editorial staff. The cuts will result in the first net reduction in newsroom jobs at the Times in recent memory. The Times' parent company, The New York Times Co., has cut jobs at other properties, including about 125 positions last year at The Boston Globe and the Telegram & Gazette of Worcester. Asked yesterday if the Globe is considering newsroom job cuts this year, publisher Steven Ainsley said in a statement: "We are always looking for operational efficiencies in every part of our business. Those considerations could include staffing levels where appropriate." (AP and Globe staff)

Rates on 30-year mortgages rose to the highest level in five weeks but still remained below the 6 percent level. Freddie Mac, the mortgage company, said 30-year, fixed-rate mortgages averaged 5.72 percent this week, up from 5.67 percent last week. Other mortgage rates were mixed with only slight movements in any category this week. Analysts attributed that to mixed economic news with some indicators showing signs of strength such as a report that productivity increased in the fourth quarter while others, such as pending home sales, indicated continued weakness. (AP)