This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Huntington Ingalls Industries Reports First Quarter Results; Segment Operating Margin Continues To Improve

  • Revenues were $1.56 billion for the first quarter of 2013
  • Segment operating margin was 7.7 percent, a 124 bps improvement over Q1 2012
  • Total operating margin was 6.1 percent, up from 5.1 percent in the same period last year
  • Diluted earnings per share was $0.87 for the quarter
  • Cash and cash equivalents at the end of the quarter were $652 million

NEWPORT NEWS, Va., May 8, 2013 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) reported first quarter 2013 revenues of $1.56 billion, relatively flat compared to the same period last year. Segment operating income for the first quarter was $120 million, compared to $101 million in the same period last year. Total operating income for the quarter was $95 million, compared to $80 million in the same period last year. Pension-adjusted operating income for the first quarter was $118 million, or 7.6 percent of revenue, compared to $97 million, or 6.2 percent of revenue, in the comparable period of 2012. These increases were primarily attributable to additional risk retirement at Newport News on the SSN-774 Virginia-class (VCS) program and the absence of unfavorable cumulative adjustments on the LPD-17 San Antonio-class (LPD) program at Ingalls.

First quarter diluted earnings per share was $0.87, compared to diluted earnings per share of $0.67 in the same period of 2012. Pension-adjusted diluted earnings per share for the quarter was $1.17, compared to $0.89 in the comparable period of 2012.

New business awards for the quarter were approximately $3.2 billion, consisting primarily of contracts for the CVN-72 USS Abraham Lincoln refueling and complex overhaul (RCOH) and continued construction preparation for CVN-79 John F. Kennedy.

"HII continues to execute well on its programs at Ingalls Shipbuilding and Newport News Shipbuilding," said Mike Petters, HII's president and chief executive officer. "Even with the continued uncertainty surrounding the defense budget, HII continues to garner support for its programs through alignment with the Navy's priorities and is focused on driving performance to our goal of 9-plus percent operating margin by 2015."

First Quarter 2013 Highlights
         
  Three Months Ended    
  March 31    
(In millions, except per share amounts) 2013 2012 $ Change % Change
Revenues  $ 1,562  $ 1,568  $ (6) (0.4)%
Segment operating income 1 120 101 19 18.8%
 Segment operating margin % 7.7% 6.4%   124 bps
Total operating income 95 80 15 18.8%
 Total operating margin % 6.1% 5.1%   98 bps
Net earnings 44 33 11 33.3%
Diluted earnings per share  $ 0.87  $ 0.67  $ 0.20 29.9%
Weighted-average diluted shares outstanding 50.3 49.5    
         
Pension-adjusted Operating Highlights        
Total operating income 95 80    
FAS/CAS Adjustment 23 17    
Pension-adjusted operating income 2 118 97 21 21.6%
 Pension-adjusted operating margin % 2 7.6% 6.2%   137 bps
         
Pension-adjusted Net Earnings        
Net earnings 44 33    
After-tax FAS/CAS Adjustment 3 15 11    
Pension-adjusted net earnings 2 59 44    
Weighted-average diluted shares outstanding 50.3 49.5    
Pension-adjusted diluted earnings per share 2  $ 1.17  $ 0.89  $ 0.28 31.5%
1 Non-GAAP metric that excludes non-segment factors affecting operating income. See Exhibit B for definition and reconciliation.
2 Non-GAAP metric - see Exhibit B for definition.
3 Tax effected at 35% federal statutory tax rate.
 
Operating Segment Results
         
Ingalls Shipbuilding
  Three Months Ended    
  March 31    
(In millions) 2013 2012 $ Change % Change
Revenues  $ 631  $ 692  $ (61) (8.8)%
Operating income (loss) 26 20 6 30.0%
Operating margin % 4.1% 2.9%   123 bps

Ingalls revenues for the first quarter decreased $61 million, or 8.8 percent, from the same period in 2012, driven by lower sales in amphibious assault programs, partially offset by higher sales in the National Security Cutter (NSC) program. The decrease in amphibious assault program revenues was due to lower sales on LPD-23 USS Anchorage, LPD-24 USS Arlington, LPD-25 Somerset and LHA-6 America, partially offset by higher sales on LPD-26 John P. Murtha, LPD-27 Portland and LHA-7 Tripoli. Revenues on the NSC program were higher due to higher sales on the construction contracts of NSC-4 Hamilton and NSC-5 James and the advance procurement contract on NSC-6 Munro. Surface combatants revenues remained constant from the same period in 2012 as higher sales on DDG-113 John Finn were offset by lower sales on DDG-114 Ralph Johnson.

Ingalls operating income for the quarter was $26 million, an increase of $6 million over the same period in 2012. The increase was primarily due to the absence of unfavorable cumulative adjustments on the LPD program.

Stock quotes in this article: HII 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs