U.S. military shipbuilder Huntington Ingalls Industries reported fourth quarter 2017 revenues of $2 billion, up 3.9 percent from the fourth quarter of 2016.
Operating income in the quarter was $227 million and operating margin was 11.4 percent, compared to $268 million and 13.9 percent, respectively, in the fourth quarter of 2016.
Diluted earnings per share in the quarter was $1.41, compared to $4.20 in the same period of 2016. Diluted earnings per share in fourth quarter 2017 included a one-time expense related to the early extinguishment of debt, the tax expense for the revaluation of net deferred tax assets resulting from the enactment of the Tax Act and the tax expense associated with a $214 million acceleration of discretionary pension contributions in 2018. Excluding these items, adjusted diluted earnings per share1 in the quarter was $3.11.
For the full year, revenues of $7.4 billion increased 5.3 percent over 2016. Operating income in 2017 was $865 million and operating margin was 11.6 percent, compared to $858 million and 12.1 percent, respectively, in 2016. Diluted earnings per share for the full year was $10.46, compared to $12.14 in 2016. Excluding the one time items described in the preceding paragraph, adjusted diluted earnings per share1 for 2017 was $12.14.
Cash from operations in 2017 was $814 million and free cash flow1 was $453 million, compared to $822 million and $537 million, respectively, in 2016.
New contract awards for 2017 were approximately $8.1 billion, bringing total backlog to $21.4 billion as of December 31, 2017. Major contract awards in 2017 included Bougainville (LHA 8) construction, the refueling and complex overhaul (RCOH) of the aircraft carrier USS George Washington (CVN 73), a contract to begin integrated product and process development for the U.S. Navy’s new Columbia-class submarines, USS Boise (SSN 764) overhaul, LPD 29 (unnamed) advanced procurement, special selected restricted availability on USS Chosin (CG 65), and Jack H. Lucas
(DDG 125) Flight III upgrades.
“Our 2017 results reflect Huntington Ingalls Industries’ continued focus on operational performance,” said Mike Petters
, HII’s president and CEO. “Delivering six ships this year, while growing backlog and integrating our Technical Solutions business, demonstrates the commitment of our nearly 38,000 employees.”