HII struggles to grow despite Alion acquisition
Ingalls Shipbuilding successfully completed acceptance trials for the US Coast Guard’s ninth National Security Cutter. (Photo: Huntington Ingalls Industries)
Huntington Ingalls Industries has released its Q3 2021 report, showing limited growth from Q3 2020.
Operating income for Huntington Ingalls Industries (HII) in the Q3 2021 was $118 million and the operating margin was 5%, marking a fall from the Q3 2020 figures of $222 million operating income and 9.6% operating margin.
The decrease in operating income and operating margin were primarily the result of a less favourable operating FAS/CAS adjustment (the difference between expenses for pensions and other post-retirement benefits and the expenses included in operating income).
Net earnings in Q3 2021 reached $147 million, compared to $222 million in Q3 2020. Diluted earnings per share in the the quarter were $3.65, compared to $5.45 in the same period of 2020.
This reduction can also be attributed to lower revenues from existing programmes such as the Legend-class National Security Cutter, the Arleigh Burke-class guided-missile destroyer and amphibious assault ships.
New contract awards for HII in Q3 2021 totalled approximately $600 million, bringing the total backlog to approximately $50.1 billion as of 30 September 2021.
Moreover, the acquisition of Alion Science and Technology — and major contract awards such as a recent $273 million USN maintenance contract — indicate strong potential for growth in Q4.
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