Huntington Ingalls Industries reports 1Q 2020 results
Huntington Ingalls Industries announced sales of $2.3 billion in the first quarter of 2020 , up 8.8 percent from Q1 2019.
The increase was driven primarily by higher volume in the shipbuilding divisions of HII's Newport News and Ingalls, as well as development in the Technical Solutions division of HII.
Operating profit in the quarter was $215 million and operating margin in the first quarter of 2019 was 9.5 percent, compared to $161 million and 7.7 percent, respectively.
The rises in operating profit and operating margin were largely the result of a more favorable operating FAS / CAS change and a higher risk retirement in both the divisions Newport News and Ingalls shipbuilding.
Total revenues were $172 million in the quarter , compared with $118 million in the first quarter of 2019.
The rise in net earnings for the quarter was largely attributed to higher operating income and a more favorable FAS pension payout, partly offset by a loss of $16 million reported in Other, net resulting from lower returns on marketable securities related to our unqualified benefit plans.
Diluted earnings per share were $4.23 in the quarter , compared to $2.85 in the same period in 2019.
First quarter cash from operations was $68 million and free cash flow1 was $2 million , compared to $11 million in the first quarter of 2019 and negative $63 million.
The quarter's new contract awards were nearly $900 million, guided largely by an award for the design of the Sam Nunn guide missile destroyer. Backlog totaled roughly $45.2 billion as of March 31 , 2020.
Maritime Business World