Newport News shipyard income jumps, but Huntington Ingalls sees decline
Daily Press February 10, 2022
(Tribune News Service) — Newport News Shipbuilding’s operating earnings — the difference between revenue and the cost of building and overhauling Navy ships — jumped last year, largely because of better performance on Virginia-class submarines and a recovery from 2020′s pandemic-affected results.
The shipyard’s earnings for the year rose 51% to $352 million, even though revenue was up less than 2% to $5.66 billion.
Its parent company, Huntington Ingalls Industries, said net earnings — its after-tax profit — fell nearly 22% to $544 million, or $13.50 per share. HII’s revenue rose just under 2% to $9.52 billion.
HII’s net was hit by a less favorable accounting adjustment of pension and postretirement plan expenses to reconcile the standards used for publicly traded companies and those required under U.S. government cost accounting standards.
HII president and chief executive Mike Petters said 2021 was “another year of consistent program execution in the face of a challenging operational environment on multiple fronts.”
At Newport News, higher revenue on aircraft carrier and submarine work came from the new Block V Virginia-class and Columbia-class submarines program, as well as the overhaul and refueling of USS John C. Stennis and stepped-up work on the two newest Ford-class carriers, the Enterprise and Doris Miller.
Those gains were somewhat offset by a decline in nuclear support services, however.
In the last quarter of the year, meanwhile, the shipyard christened Virginia-class submarine New Jersey. The overhaul and refueling of USS George Washington is 94% complete and construction of the carrier John F. Kennedy is 83% complete.
Looking ahead, Newport News expects this year to complete the overhaul and refueling of USS George Washington this year, finish maintenance and modernization on USS Gerald R. Ford and begin testing the electromagnetic catapult on the Kennedy.
This year will also see the yard deliver the submarine Montana, as well as completion of an overhaul of USS Helena.
Next year, the shipyard is set to deliver the submarine New Jersey, while float off for the submarine Massachusetts and the crew move onto the Kennedy are also planned.
HII expects modest growth in revenue this year from its shipyards in Newport News and Mississippi, along with improved profit margin, and is looking for a roughly 70% rise in revenue from its Technical Solutions division, which includes its unmanned vessels operation in Hampton.
Petters said the company “completed transformational changes” at Technical Solutions, saying it is in position for “sustainable, long-term value creation.”
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