Huntington Ingalls Industries Profits up in Q3 Report
Shipbuilder Huntington Ingalls Industries (HII) released its third quarter 2014 results which reported revenues of $1.72 billion, up 4.9 percent compared to the same period last year. Third quarter diluted earnings per share was $1.96, compared to diluted earnings per share of $1.36 in the same period of 2013, and adjusted diluted earnings per share for the quarter was $1.67, compared to $1.17 in the same period of 2013.
Segment operating margin for the quarter was 8.8 percent, while total operating margin was 10 percent, a 220 bps improvement over Q3 2013.
Segment operating income for the third quarter was $151 million, compared to $142 million in the same period last year, while total operating income for the quarter was $171 million, compared to $127 million in the same period last year. According to the shipbuilder, these increases in operating income are primarily attributable to performance improvement and risk retirement at Ingalls Shipbuilding on the LPD-17 San Antonio class and a favorable FAS/CAS Adjustment, partially offset by the net favorable impact in the prior year of hurricane insurance recoveries and the closure of the Gulfport Composite Center of Excellence.
Cash and cash equivalents at the end of the quarter were $769 million.
New contract awards for the quarter were approximately $0.4 billion, bringing total backlog at the end of Q3 2014 to $22.8 billion, of which $13.1 billion, or 57.5 percent, was funded.
"Our healthy backlog continues to support our businesses as we progress toward our goal of achieving 9-plus percent operating margin in 2015," said Mike Petters, HII's president and CEO. "Despite the challenging budgetary environment, we remain focused on continued program execution, risk retirement and cash generation."