Huntington Ingalls Industries said Tuesday its Newport News Shipbuilding had secure a roughly $200 million subcontract modification to provide long-lead components, including commodities materials, and labor for the Columbia-class ballistic missile submarine.
Huntington Ingalls is a major subcontractor on General Dynamics Electric Boat’s roughly $5 billion Naval Sea Systems Command prime contract to develop and build 12 Columbia-class ballistic-missile submarines that will replace 18 existing Ohio-class submarines.
Like Ohio boats, Columbia-class subs will carry Trident II-D5 missiles tipped with W76 warheads provided by the Department of Energy’s National Nuclear Security Administration (NNSA).
Huntington Ingalls also works at a few major NNSA sites, including the Los Alamos National Laboratory, which designed the W76. Huntington Ingalls is a major industry subcontractor for lab operator Triad National Security, which took over management Nov. 1.
Meanwhile, the company on Thursday reported a strong third quarter with sales higher mainly on Navy programs and earnings up on the higher revenue, lower taxes, a favorable change in workers’ compensation expense and a pension benefit.
Net income increased 54 percent to $229 million, or $5.29 earnings a share, from $149 million, or $3.27 a share a year ago. The Newport News and Ingalls Shipbuilding segments posted double digit gains, which more than offset a decline at Technical Solutions. Results were $1.15 a share better than consensus estimates.
Sales increased 12 percent to $2.1 billion from $1.9 billion a year ago, primarily on gains at Newport News and Ingalls and to a lesser degree at Technical Solutions.
