Huntington Ingalls Industries reports Fourth Quarter & Year 2013 financial results with increased revenues in each period. Highlights are as follows:
• Revenues were $1.94 billion for the fourth quarter and $6.82 billion for 2013
• Segment operating margin was 8.7 percent for the fourth quarter and 8.3 percent for the full year
• Total operating margin was 9.0 percent for the fourth quarter and 7.5 percent for 2013
• Diluted earnings per share was $1.82 for the quarter and $5.18 for 2013
• Adjusted diluted earnings per share was $1.66 for the quarter and $5.36 for 2013
• Cash and cash equivalents were $1.0 billion at year-end
Segment operating income in the fourth quarter was $169 million, compared to $140 million in the same period last year, mainly driven by improved contract performance. Total operating income for the quarter was $174 million, compared to $106 million in the same period of 2012. This increase was primarily attributable to increased segment operating income and favorable variances in deferred state income taxes and the FAS/CAS Adjustment. Total operating margin was 9.0 percent for the quarter, compared to 5.8 percent in the fourth quarter of 2012.
For the year, revenues were $6.82 billion, an increase of 1.7 percent over 2012. Segment operating income for the year was $567 million, compared to $457 million last year. Total operating income for the year was $512 million, compared to $358 million in 2012. 2013 diluted earnings per share was $5.18, compared to $2.91 in 2012. Adjusted diluted earnings per share, which excludes the impact of hurricane insurance recoveries, the Gulfport closure and the FAS/CAS Adjustment, was $5.36 in 2013, compared to $3.95 last year.
Cash provided by operating activities in the fourth quarter of 2013 was $292 million, a decrease of $81 million from the same period last year, and for the year was $236 million, a decrease of $96 million from 2012. The decrease in 2013 operating cash flow was primarily driven by an increase in income tax payments and retirement benefit funding. New business awards for 2013 were approximately $9.4 billion, of which $0.7 billion was awarded in the fourth quarter, bringing total backlog to $18.0 billion as of Dec. 31, 2013.
"As HII's three-year anniversary approaches, I am pleased with the operational improvements achieved by our team and the resulting financial performance," said Mike Petters, HII's president and CEO. "The last of our under-performing contracts, LHA-6 America, will be delivered in the coming weeks, performance continues to improve at Ingalls, and we are on schedule to meet our 2015 operating margin goal."