August 12, 1998

Avondale Industries, Inc.
Post Office Box 50280
New Orleans, Louisiana  70150

We have made a review, in accordance with standards  established by the American
Institute of Certified Public  Accountants,  of the unaudited  interim financial
information of Avondale Industries,  Inc. and subsidiaries for the periods ended
June 30, 1998 and 1997, as indicated in our report dated August 3, 1998; because
we did not perform an audit, we expressed no opinion on that information.

We are aware  that our  report  referred  to above,  which is  included  in your
Quarterly  Report  on  Form  10-Q  for  the  quarter  ended  June  30,  1998  is
incorporated by reference in Registration Statement No. 333-32165 on Form S-8.

We also are aware that the aforementioned report,  pursuant to Rule 436(c) under
the  Securities  Act of  1933,  is not  considered  a part  of the  Registration
Statement  prepared  or  certified  by an  accountant  or a report  prepared  or
certified by an accountant within the meaning of Sections 7 and 11 of that Act.



/s/ DELOITTE & TOUCHE LLP
New Orleans, Louisiana