Huntington Ingalls reports 3rd-quarter gain
NEWPORT NEWS, Nov 08, 2012 (Menafn - The Virginian-Pilot - McClatchy-Tribune Information Services via COMTEX) --Huntington Ingalls Industries Inc. today reported third-quarter 2012 profit of 13 million, up from a loss of 248 million in the same quarter a year ago.
Last year's third-quarter results, however, included a 300 million goodwill charge related to its Ingalls Shipbuilding division in Mississippi -- essentially an accounting requirement triggered when a company's market capitalization, the value of its outstanding stock, falls below the book value reflected on its balance sheets.
Earnings per share were 26 cents for the quarter, up from a loss of 5.07 a share in the same quarter of 2011 that was attributed to the goodwill charge. Adjusted to exclude a non-cash workers' compensation charge and the impact of a non-cash tax expense, earnings per share for the third quarter were 74 cents a share.
The average earnings-per-share estimate of 13 analysts surveyed by Thomson Financial Network was 80 cents.
Huntington Ingalls' stock fell 1.50 a share on Wednesday, closing at 43.46 each on the New York Stock Exchange.
"Core operating performance at HII continues to improve, and the company remains on pace to deliver 9 percent plus operating margins by 2015," said Mike Petters, Huntington Ingalls' president and CEO, in a statement. "Although the underperforming ships at Ingalls continue to prove challenging, we delivered LPD-23 Anchorage during the third quarter, and we expect to deliver LPD-24 Arlington by the end of this year. Our backlog remains healthy at 16.4 billion and we are working diligently with our Navy and Coast Guard customers to provide affordable and high-quality warships."
The company's operating margin for the quarter, its operating income as a percent of revenue, was 4.1 percent. The operating margin at its Ingalls Shipbuilding division was 0.1 percent and 9.3 percent at its Newport News Shipbuilding division.
The business that became Huntington Ingalls had been the shipbuilding sector of Northrop Grumman Corp. until Northrop spun it off on March 31, 2011.
The nation's largest military shipbuilder reported third-quarter revenues of 1.6 billion, up 0.2 percent from the same period last year. Its Newport News Shipbuilding unit is the nation's only builder of aircraft carriers and one of only two submarine builders. Its Ingalls division makes surface combatants such as destroyers and amphibious warships.
During the quarter, the company was awarded about 1.7 billion in new contracts.
Robert McCabe, (757) 446-2327, robert.mccabe@pilotonline.com
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