HII Reports Q1 Earnings Jump

Posted by Eric Haun
Thursday, May 08, 2014
Newport NEws works on the USS Abraham Lincoln’s (CVN 72) refueling and complex overhaul (Photo by John Whalen/HII)

Huntington Ingalls Industries (HII) reported first quarter 2014 revenues of $1.59 billion, up 2 percent compared to the same period last year. First quarter diluted earnings per share was $1.81, compared to diluted earnings per share of $0.87 in the same period of 2013. Adjusted diluted earnings per share for the quarter was $1.53, compared to $1.17 in the comparable period of 2013.

Segment operating income for the first quarter was $137 million, compared to $120 million in the same period last year. Total operating income for the quarter was $159 million, compared to $95 million in the same period last year. Adjusted operating income for the first quarter, which excludes the FAS/CAS Adjustment, was $137 million, or 8.6 percent of revenue, compared to $118 million, or 7.6 percent of revenue, in the comparable period of 2013. The increase in adjusted operating income was primarily attributable to risk retirement at Ingalls on the LPD-17 San Antonio-class (LPD) program and National Security Cutter (NSC) program and at Newport News on the CVN-78 Gerald R. Ford construction contract.

New business awards for the quarter were approximately $2.2 billion, consisting primarily of contracts for continued construction preparation for CVN-79 John F. Kennedy and construction of NSC-7 Kimball. Total backlog at the end of Q1 2014 was $18.7 billion, of which $13 billion was funded.

"Notwithstanding continued debate surrounding the defense budget and the impact of sequestration, HII has continued to maintain a healthy backlog and strong operating performance at both segments," said Mike Petters, HII's president and chief executive officer. "With the delivery of LHA-6 America in April 2014, HII has reached a significant milestone on its path to 9 plus percent margins in 2015."

Ingalls revenues for the first quarter decreased $3 million, or 0.5 percent, from the same period in 2013, driven by lower sales in amphibious assault ships, partially offset by higher sales in the NSC program and surface combatants. The decrease in amphibious assault ships revenues was due to lower volumes on LHA-6 America and LPD-25 USS Somerset, partially offset by higher volumes on LPD-27 Portland. Revenues on the NSC program were higher due to higher volumes on NSC-5 James and NSC-6 Munro construction contracts. Surface combatants revenues were higher due to higher volumes on DDG-117 Paul Ignatius and DDG-114 Ralph Johnson construction contracts.

Ingalls operating income for the quarter was $43 million, an increase of $19 million over the same period in 2013. Ingalls operating margin was 7.9 percent for the quarter as compared to 4.4 percent in Q1 2013. These increases were primarily due to risk retirement on the LPD and NSC programs.

Key Ingalls highlights for the quarter:
•LPD-25 USS Somerset sailed away from the Avondale Shipyard
•LHA-6 America completed successful acceptance sea trials
•Received a $602 million contract modification to fund construction of the Arleigh Burke-class guided missile destroyer DDG 119
•Received a $497 million contract to fund construction of NSC-7 Kimball

Newport News revenues for the first quarter increased $35 million, or 3.5 percent, from the same period in 2013, primarily driven by higher sales in aircraft carriers and the acquisition of The S.M. Stoller Corp. Higher revenues in aircraft carriers were primarily due to increased volumes on the execution contract for the CVN-72 USS Abraham Lincoln refueling and complex overhaul (RCOH) and the inactivation contract for CVN-65 USS Enterprise, partially offset by lower volumes on the execution contract for the CVN-71 USS Theodore Roosevelt RCOH and the construction contract for CVN-78 Gerald R. Ford. Submarine revenues related to the SSN-774 Virginia-class submarine (VCS) program remained stable as lower volumes on Block II boats following the delivery of SSN-783 USS Minnesota were offset by higher volumes on Block III construction and Block IV advance procurement.

Newport News operating income for the quarter was $94 million, a $2 million decrease from the same period in 2013. Newport News operating margin was 9 percent for the quarter, down from 9.5 percent in Q1 2013. These decreases were mainly related to lower risk retirement on the VCS program and the execution contract for CVN-71 USS Theodore Roosevelt RCOH, partially offset by risk retirement on the construction contract for CVN-78 Gerald R. Ford.

Key Newport News highlights for the quarter:
•Acquired The S.M. Stoller Corp., a leading provider of environmental, nuclear, and technical consulting and engineering services to the Department of Energy, Department of Defense and private sector
•Opened a field office in Aiken, S.C., as part of its continuing efforts to expand the company's business in the Department of Energy and commercial energy markets
•Received a $1.295 billion contract modification to a previously awarded construction preparation contract for CVN-79 John F. Kennedy

huntingtoningalls.com

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

KEP Marine Unveils KMGBL

KEP Marine – the manufacturer of type approved displays, computers and peripherals, announced  the release of the affordable, high-quality KMGBL Glass Bridge Light Displays.

New Load Measurement Solution for Port of Dampier

Strainstall designs and delivers a load measurement solution for the world’s largest floating wharf at Port of Dampier.   Strainstall, part of James Fisher and Sons plc,

Rolls-Royce Power Package for USS Zumwalt

Rolls-Royce announced delivery of the twin fixed pitch propellers to Bath Iron Works for installation on the U.S. Navy’s most modern surface combatant, the future USS Zumwalt,

Shipbuilding

New Research Vessel for University of New Hampshire

All American Marine, Inc. (AAM) has entered into a contract with the University of New Hampshire (UNH) for the design and construction of a new aluminum catamaran research vessel.

Self-lubricating Bearing Polymer: Safe, Easy to Machine

Many plastics and metallic alloys present machining challenges as some deform and are difficult to maintain exacting tolerances, while others require strict and

Carnival’s Costa Brand Orders Two LNG Cruise Ships

Costa’s two new cruise ships will be the largest ever built based on guest capacity; Costa will join sister brand AIDA Cruises in building the first-ever cruise

Finance

Work Begins on $1.6 bln Container Terminal at Jebel Ali Port

DP World Chairman Sultan Ahmed Bin Sulayem announced the start of construction work on a brand new container terminal at Jebel Ali Port, Dubai.   Phase 1 of the

Singapore MPA Wants LNG Bunkering Options

Singapore's Maritime Port Authority is seeking proposals on liquefied natural gas bunker supplies as it shifts away from fossil fuels towards gas while trying to

China's Navy Drills in South China Sea

China said it conducted air and sea drills in the South China Sea on Tuesday as it stakes an increasingly assertive claim to virtually the whole sea despite rival claims by neighbours.

News

New Research Vessel for University of New Hampshire

All American Marine, Inc. (AAM) has entered into a contract with the University of New Hampshire (UNH) for the design and construction of a new aluminum catamaran research vessel.

Voyager IP Wins Irish Navy Satellite Contract

Voyager IP, the Irish marine telecoms solutions specialist, has partnered with the Irish National Space Center to win a €500,000 contract to manage the entire satellite

Diesel Spill in Houston Ship Channel

A small section of the Upper Houston Ship Channel was closed Tuesday morning after a report of 1,000 gallons of diesel entered Greens Bayou from a cement facility, the U.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Salvage Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2313 sec (4 req/sec)