Huntington Ingalls Industries Reports Strong 2Q Results

press release
Wednesday, August 08, 2012

Huntington Ingalls Industries Reports Strong Second Quarter Results; Significant Progress on Key Programs.

 

• Revenues were $1.72 billion for the second quarter 2012
• Segment operating margin improved to 7.4 percent from 6.3 percent in Q2 2011
• Total operating margin rose to 6.2 percent, up from 5.8 percent in the same period 2011
• Diluted earnings per share was $1.00, up 20 cents over second quarter 2011
• Cash provided from operating activities was $151 million for the quarter

 

Huntington Ingalls Industries (NYSE:HII) reported second quarter 2012 revenues of $1.72 billion, up 10.1 percent from the same period last year, and segment operating margin of 7.4 percent, up from 6.3 percent in Q2 2011. Total operating margin was 6.2 percent, up 34 basis points from the second quarter of last year, and second quarter diluted earnings per share was $1.00, compared with $0.80 in the same period of 2011, an increase of $0.20. Cash provided by operating activities in the second quarter of 2012 was $151 million, $35 million less than the same period last year. New business awards for the 2012 second quarter were approximately $2.5 billion, bringing total backlog to $16.2 billion, of which $12.6 billion is funded.
 

"The second quarter reflected the strong execution of our existing contracts and demonstrated the steady progress toward restoring margins at Ingalls," said Mike Petters, HII's president and chief executive officer. "Several of our large programs reached key milestones during the quarter, including the launch of two ships, LPD-25 Somerset and LHA-6 America, and the successful completion of sea trials on LPD-23 Anchorage."
       
Second quarter consolidated revenues increased $158 million from the same period in 2011, driven by higher sales at the Ingalls and Newport News segments. The increase in Ingalls revenues was primarily attributable to higher sales in amphibious assault ships. Newport News revenues increased due to higher sales in aircraft carriers and submarines, offset by lower fleet support services.    
 

Segment operating income in the quarter was $127 million, up $29 million from the same 2011 period. The increase was primarily due to higher sales as well as performance improvements in the Virginia-class submarine construction (VCS) program, lower unfavorable performance adjustments in 2012 on the LPD-17 San Antonio-class (LPD) program and receipt of $7 million in resolution of a contract dispute with a private party. Total operating income was $106 million, up from $91 million in the same period last year. The increase was primarily due to the improvement in segment operating income, offset by a higher FAS/CAS adjustment. Total operating margin was 6.2 percent for the quarter, up 34 basis points from the second quarter of 2011.  
 

The value of new contract awards during the three months ended June 30 was approximately $2.5 billion. Significant new awards during this period included contracts for the detail design and construction of LHA-7 Tripoli, advance procurement for construction of LPD-27 (unnamed) and planning efforts for the CVN-72 USS Abraham Lincoln refueling complex overhaul (RCOH).


Ingalls revenues for the second quarter increased $48 million from the same period in 2011, driven by higher sales in amphibious assault ships. The increase in amphibious assault ships was due to higher sales on LHA-7 Tripoli, partially offset by lower sales on LHA-6 America. Surface combatants revenue remained stable as a result of higher sales on the DDG-1000 Zumwalt-class destroyer program, offset by lower sales on the DDG-51 Arleigh Burke-class destroyer program. LPD program revenues remained constant as higher sales on LPD-27 (unnamed) and LPD-25 Somerset were offset by lower sales following the delivery of LPD-22 USS San Diego in 2011 and in the construction of LPD-24 Arlington. The National Security Cutter (NSC) program remained flat due to lower sales following the delivery of NSC-3 USCGC Stratton in 2011, offset by higher sales on the construction of NSC-4 Hamilton and NSC-5 Joshua James and the advance procurement contract on NSC-6 (unnamed).
 

Ingalls operating income for the second quarter was $38 million compared with $19 million in the same period in 2011. The increase was primarily due to lower unfavorable performance adjustments on LPD-22 USS San Diego and higher favorable performance adjustments on LPD-25 Somerset in 2012 compared to the same period in 2011, as well as receipt of $7 million in resolution of a contract dispute with a private party. This increase was partially offset by higher unfavorable performance adjustments on LPD-24 Arlington and lower favorable performance adjustments on LPD-23 Anchorage in 2012 compared to the same period in 2011. Ingalls operating margin was 5.0 percent for the quarter, up from 2.7 percent in the same quarter of 2011.  

 

Key Ingalls program milestones for the quarter:

 

• Launched LPD-25 Somerset at Avondale shipyard
• Awarded $133.7 million advance procurement contract for LPD-27 (unnamed)
• Awarded $2.38 billion contract for detail design and construction of LHA-7 Tripoli
• Launched the U.S. Navy's next amphibious assault ship, LHA-6 America, at Pascagoula shipyard
• Successfully completed U.S. Navy acceptance trials for LPD-23 Anchorage

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

JFD Wins Lifeboat Design Contract for Flash Tekk

JFD, part of James Fisher and Sons plc, announced that it has won a contract with Singaporean company Flash Tekk Engineering for the design and manufacture of up

First Damen Tug for Fratelli Neri

Fratelli Neri S.p.A has taken delivery of a Damen ASD Tug 3212. The new vessel, called Luisa Neri, was handed over from Damen Maaskant Shipyards Stellendam in the Netherlands, on 25 January 2016.

Wood Group Extends North Sea Chevron Contract

Wood Group has secured an extension to continue to support Chevron Upstream Europe across four offshore assets in the North Sea. Wood Group PSN (WGPSN) will deliver

Shipbuilding

Meyer Turku Lays Keel of Tallink’s LNG Ferry

The keel of the Tallink’s new LNG-powered fast ferry Megastar was laid at the Meyer Turku shipyard   The hull assembly of Tallink’s new fast ferry Megastar started

Pentagon: Cut in LCS Ship Program 'Not an Indictment'

U.S. Deputy Defense Secretary Robert Work said the Pentagon's plan to truncate the Littoral Combat Ship program at 40 ships instead of 52 reflected budget pressures

New Multipurpose Tractor Tugs from OSD

Netherlands-based OSD (Offshore Ship Designers) has designed a new series of tractor tugs which can be used for a range of functions, including escort operations,

Ship Repair & Conversion

Beacon Finland Appoints Rio Marine for US Support

Beacon Finland, a maritime-related firm engaged in naval architecture, marine engineering and equipment, has appointed Rio Marine to service its JAK-ATB coupling systems in the U.

Noncompliant Cargo Ship Banned from Australia

The 86-meter general cargo ship Noah Satu has been prohibited from entering or using any Australian ports for the second time in less than 12 months, following another round of safety,

‘Choice Alliance’ Formed to Serve BWT Market

A strategic alliance between Choice Ballast Solutions and Drew Marine has been formed to provide vertically integrated capabilities within the ballast water treatment (BWT) market.

Finance

Obama’s Budget ‘Grossly Imbalanced’ For US Ports -AAPA

Landside freight transportation funds would increase; navigation, port security and emission reduction funds would drop    The American Association of Port Authorities

Amazon Expands Logistics Reach in China

Amazon.com Inc is aggressively expanding its logistics operations in China as part of a broader effort to control the rising cost of shipping billions of packages.

AIWA Highlights Investment Needs on the Nation’s Marine Highways

Nowhere is that more important than on the Atlantic Intracoastal Waterway. As 2016 begins, we at the Atlantic Intracoastal Waterway Association (AIWA) are looking

Government Update

Obama’s Budget ‘Grossly Imbalanced’ For US Ports -AAPA

Landside freight transportation funds would increase; navigation, port security and emission reduction funds would drop    The American Association of Port Authorities

AIWA Highlights Investment Needs on the Nation’s Marine Highways

Nowhere is that more important than on the Atlantic Intracoastal Waterway. As 2016 begins, we at the Atlantic Intracoastal Waterway Association (AIWA) are looking

Pentagon: Cut in LCS Ship Program 'Not an Indictment'

U.S. Deputy Defense Secretary Robert Work said the Pentagon's plan to truncate the Littoral Combat Ship program at 40 ships instead of 52 reflected budget pressures

 
 
Maritime Contracts Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.1116 sec (9 req/sec)