Huntington Ingalls Industries (HII) on Thursday reported lower revenue and operating income in the third quarter of 2016, decreases it attributed in part to lower revenues in shipbuilding programs and lower sales volumes in some contracts.
Company revenue fell 6.5 percent, to $1.68 billion, from $1.8 billion during the same quarter last year. Quarterly diluted earnings per share also fell from $2.29 to $2.27.
Operating income dropped 12.5 percent, from $200 million to $175 million, while the company took in roughly $1.2 billion in new business awards for the three-month period.
The company’s Newport News Shipbuilding operating segment reported an 8.9 percent decrease in revenue from the same period last year, to $1.1 billion, which it said was driven primarily by lower aircraft carrier and submarine revenues. The segment brought in $79 million in operating income, down by $21 million from the same time last year.
Operating margin for the segment landed at 7.4 percent, down from 8.5 percent.
The segment reported several key milestones for the quarter, including a contract award potentially worth $400 million over five years for repair work on in-service nuclear-powered submarines and other vessels and facilities.
The company did not break down earnings for Stoller Newport News Nuclear (SN3), a Newport News Shipbuilding subsidiary that provides capabilities including nuclear waste management and environmental services.
Huntington Ingalls in 2014 acquired S.M. Stoller and later combined it with the company’s Newport News Nuclear subsidiary.
SN3 is one of several parent companies for Savannah River Nuclear Solutions, the management and operations contractor for the Department of Energy’s Savannah River Site in South Carolina, with responsibilities that include managing some radioactive waste at the facility. SRNS’ contract at the site expires in July 2018.
The company has performed waste management services for DOE at facilities including the Hanford Site in Washington state, the Idaho National Laboratory, the Paducah Gaseous Diffusion Plant in Kentucky, and the Waste Isolation Pilot Plant in New Mexico.
