Huntington Ingalls' 2nd-quarter profit up 75%
NEWPORT NEWS — Huntington Ingalls Industries Inc., the parent of Newport News Shipbuilding, today reported a second-quarter 2014 profit of $100 million, up 75.4 percent from $57 million in the same quarter a year earlier.
Earnings per share for the nation’s largest military shipbuilder were $2.04 for the quarter, up from $1.12 a share a year earlier.
The latest results beat Wall Street estimates by 23 cents a share. The consensus earnings-per-share estimate among 14 analysts surveyed by Thomson Financial Network was $1.81.
After adjusting for pensions, profit for the quarter was $86 million, a nearly 25 percent increase from $69 million in the second quarter of 2013.
Adjusted earnings per share for the quarter were $1.75.
On May 30, the company completed the purchase of Houston-based UniversalPegasus International Holdings, which provides engineering and project management services to energy clients worldwide.
"With the acquisition of UniversalPegasus, HII is leveraging its engineering and program management core competencies in the energy market, while remaining focused on our Navy program execution to reach 9-plus percent margins in 2015," said Mike Petters, HII's president and chief executive officer, in a statement.
The UniversalPegasus deal was the company's second big acquisition this year in the energy engineering business.
In January, Huntington Ingalls announced it had acquired Broomfield, Colo.-based S.M. Stoller Corp., which provides environmental, nuclear, and technical consulting and engineering services to the Department of Energy and other customers.
The company’s stock closed at $89.40 a share on Wednesday, down 56 cents a share, in trading on the New York Stock Exchange.
Also on Wednesday, the company’s board declared a quarterly cash dividend of 20 cents per share, payable on Sept. 12 to shareholders of record as of the close of business on Aug. 29.
Huntington Ingalls designs, builds and maintains ships for the Navy and Coast Guard at its two divisions, Newport News Shipbuilding and Mississippi-based Ingalls Shipbuilding.
With more than 23,000 employees, Newport News Shipbuilding is the largest industrial employer in Virginia.
It’s the nation’s only designer, builder and refueler of Navy aircraft carriers and one of two providers of submarines.
Huntington Ingalls’ operations also include Virginia Beach-based defense contractor AMSEC LLC.