U.S. shipbuilder Huntington-Ingalls posted a lower operating margin for the first quarter on Tuesday. This was due to?higher costs?amid inflation?and?volatility of global trade.

In premarket trading, shares of the company fell by nearly 3%.

U.S. Tariffs on Major Trading Partners have Added?to Broader Market Uncertainty, Deepening Strain on Global?Supply Chains across Sectors, including Defense.

Cost pressures have weighed down the shipbuilder despite strong U.S. demand for aircraft carriers and submarines amid China's increasing naval presence and global tensions.

The segment operating margin for the first quarter ended March 31 decreased 80 basis points, to 5.3%. Sales in Newport News Shipbuilding increased 19.3%.

The cost of product sales increased by 20% to $1.74 billion.

Huntington's quarterly profit per share was flat at $3.79 while its operating margin dropped to 5%, down from 5.9%.

LSEG data shows that total quarterly revenue was $3.1 billion. This is above Wall Street 'estimates' of $3.02 Billion. (Reporting by Aishwarya Jain in Bengaluru; Editing by Diti Pujara)

(source: Reuters)