Huntington Ingalls Industries reports 25 percent drop in profit in fourth quarter

Huntington Ingalls Industries (HII): Newport News, Fourth quarter and 2012 results

THE TAKE: HII, which designs, builds and maintains nuclear and nonnuclear ships for the U.S. Navy and Coast Guard, reported net income of $50 million for the fourth quarter, down 25 percent from the same quarter in 2011. Earnings per share were 98 cents versus $1.35. The company had new business awards of $6 billion in 2012, with $1 billion awarded in the fourth quarter, helping the company turn in a better overall performance than in 2011. However, $85 billion in federal budget cuts set to begin on Friday could result in layoffs at civilian shipyards if maintenance contracts are cut. President Barack Obama visited the company’s shipyard in Newport News Tuesday, warning of the impact of the cuts, known as sequestration. 

THE NUMBERS:
• Revenue: $1.82 billion for the fourth quarter; $6.71 billion for 2012.
• Operating income: $106 million for the fourth quarter; $358 million for 2012.
• Net income: $50 million for the fourth quarter; $146 million for 2012.
• Diluted earnings per share:  $0.98 for the quarter; $2.91 for 2012
• Cash and cash equivalents: $1.1 billion at year-end

THE COMPANY’S TAKE: Mike Petters, HII’s president and chief executive officer:  “Since we were spun off as an independent, publicly traded company, we have been focused on execution, retiring risk and driving improved performance and margins at Ingalls Shipbuilding while improving performance and maintaining stability at Newport News Shipbuilding. I am pleased to say that we made significant progress in these areas in 2012 and continue on the path to achieving 9-plus percent operating margins by 2015.”