Marine Link
Sunday, September 25, 2016

Huntington Ingalls Reports Strong Fourth Quarter

March 28, 2012

Newport News, Va. -- Huntington Ingalls Industries (HII) reported fourth quarter 2011 sales of $1.74 billion, consistent with the fourth quarter of 2010.

The impact of a $10 million non-cash goodwill impairment finalization adjustment resulted in reported net earnings of $69 million for the quarter and $1.39 diluted earnings per share on a GAAP basis. Excluding the goodwill impairment adjustment in the fourth quarter, total operating margin was 6.6 percent, up from 6.0 percent for the same period last year, and diluted earnings per share was $1.19 for the quarter.

For the full year 2011, sales were $6.58 billion, down 2.2 percent from 2010. The impact of a $290 million non-cash goodwill impairment charge resulted in a reported net loss of $94 million for 2011 and a $1.93 loss per share on a GAAP basis. Excluding the charge, total operating margin was 6.1 percent, up from 3.7 percent last year, and diluted earnings per share was $3.97 for 2011, up from $2.77 in 2010.

Cash provided by operations in the fourth quarter of 2011 was $474 million, up $266 million, or 128 percent, over the fourth quarter of 2010. Full year 2011 cash provided by operations was $528 million, up $169 million, or 47 percent, over 2010. New business awards for 2011 were $5.6 billion, of which $0.8 billion was awarded in the fourth quarter, bringing total backlog to $16.3 billion as of Dec. 31, 2011.

"Our overall performance was very strong for the quarter, and we remain on track to deliver our long-term financial performance goals," said Mike Petters, HII's President and Chief Executive Officer. "In addition, the delivery of the amphibious ship LPD-22 San Diego in December marked a major milestone toward completing the turnaround at our Ingalls Shipbuilding segment. Despite the uncertainty around the defense budget, our focus remains on continuing to deliver high-quality ships valued by our customers, the U.S. Navy and Coast Guard."

Fourth quarter 2011 sales decreased $1 million and 2011 sales decreased $148 million from the comparable periods in 2010, driven by lower sales volume following the delivery of DDG-110 USS William P. Lawrence in the first quarter 2011 and lower sales volume on the LPD 22-25 contract, the CVN-71 USS Theodore Roosevelt Refueling Complex Overhaul (RCOH), the CVN-65 USS Enterprise Extended Drydocking Selected Restricted Availability (EDSRA) and the Post Shakedown Availability (PSA) for CVN-77 USS George H.W. Bush. These decreases were partially offset by higher sales on DDG-113 John Finn, the advance procurement contract for LPD-27, the LHA program, the fourth National Security Cutter (NSC), CVN-78 Gerald R. Ford, the advance construction contract for CVN-79 John F. Kennedy, the advance planning contract for the CVN-72 USS Abraham Lincoln RCOH and the Virginia-class submarine construction program. The delivery of DDG-107 USS Gravely in the third quarter 2010 also negatively affected the 2011 to 2010 fiscal year sales comparison, partially offset by higher sales volume on LPD-26 John P. Murtha.

The value of new contract awards during the fourth quarter of 2011 was approximately $0.8 billion. Significant new awards during this period included contracts for advance construction of CVN-79 John F. Kennedy, engineering and support services on the LPD San Antonio-class ships and continued work on the DDG-1000 class of destroyers. The total value of new contract awards for 2011 was approximately $5.6 billion.


In addition to the fourth quarter awards, significant new awards during 2011 included contracts for the construction of LPD-26 John P. Murtha, DDG-113 John Finn, DDG-114 Ralph Johnson and NSC-5, maintenance services at Kesselring Research and Development site, continued engineering and construction of CVN-78 Gerald R. Ford, advance planning efforts for the CVN-72 USS Abraham Lincoln RCOH, and the continued execution of the CVN-71 USS Theodore Roosevelt RCOH.
 



Maritime Reporter Magazine Cover Sep 2016 - Maritime & Ship Security

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News