Huntington Ingalls reports 4Q, full year 2016 results
Revenues of Huntington Ingalls Industries (NYSE:HII) in the fourth quarter 2016 rose 0.9% from 4Q 2015 to $1.9 billion. Operating income in the quarter was $268 million and operating margin was 13.9 percent, compared to $144 million and 7.6 percent, respectively, in the fourth quarter of 2015. Diluted earnings per share in the quarter was $4.20, compared to $1.06 in the same period of 2015, the Company said in its press release.
For the full year, revenues of $7.1 billion increased 0.7 percent over 2015. Operating income in 2016 was $858 million and operating margin was 12.1 percent, compared to $769 million and 11.0 percent, respectively, in 2015. Diluted earnings per share for the full year was $12.14, compared to $8.36 in 2015. Cash from operations in 2016 was $822 million and free cash flow1 was $537 million, compared to $861 million and $673 million, respectively, in 2015.
New contract awards for 2016 were approximately $5.2 billion, bringing total backlog to $21.0 billion as of Dec. 31, 2016. Major contract awards in 2016 included the detail design and construction contract for the amphibious transport dock Fort Lauderdale (LPD 28); a fixed-price incentive contract to build a ninth Legend-class National Security Cutter (unnamed); the planning, advanced engineering and procurement of long-lead material contract for the amphibious assault ship Bougainville (LHA 8); and the continued advance planning contract for the refueling and complex overhaul (“RCOH”) of the aircraft carrier USS George Washington (CVN 73).
Huntington Ingalls Industries (HII) is an American shipbuilding company formed on March 31, 2011 as a spin-off of Northrop Grumman. Formerly known as Northrop Grumman Shipbuilding (NGSB), it was created on 28 January 2008 by the merger of Northrop Grumman's two shipbuilding sectors, Northrop Grumman Ship Systems and Northrop Grumman Newport News. The Company designs, builds and maintains nuclear and non-nuclear ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe. For more than a century, HII has built more ships in more ship classes than any other U.S. naval shipbuilder. Employing nearly 38,000 in Virginia, Mississippi, Louisiana and California, its primary business divisions are Newport News Shipbuilding and Ingalls Shipbuilding.