Huntington Ingalls Industries Revenues were $2.3 billion in the quarter
Operating margin was 9.5%
Diluted earnings per share was $4.23
Backlog of $45.2 billion
Reiterates long-term financial targets provided at February 2020 Investor Day
NEWPORT NEWS, VA (STL.News) Huntington Ingalls Industries (NYSE: HII) reported first quarter 2020 revenues of $2.3 billion, up 8.8% from the first quarter of 2019. The increase was driven primarily by higher volume at HII’s Newport News and Ingalls shipbuilding divisions, as well as growth at HII’s Technical Solutions division.
Operating income in the quarter was $215 million and operating margin was 9.5%, compared to $161 million and 7.7%, respectively, in the first quarter of 2019. The increases in operating income and operating margin were mainly the result of a more favorable operating FAS/CAS adjustment and higher risk retirement at both Newport News and Ingalls shipbuilding divisions.
Net earnings in the quarter were $172 million, compared to $118 million in the first quarter of 2019. The increase in net earnings for the quarter was mainly the result of higher operating income and a more favorable FAS (non-service) pension benefit, partially offset by a $16 million loss recorded in Other, net as a result of lower returns on marketable securities related to our non-qualified benefit plans.
Diluted earnings per share in the quarter was $4.23, compared to $2.85 in the same period of 2019. Excluding the impacts of pension, adjusted earnings per share in the quarter was $2.43, compared to $2.14 in the same period of 2019.
First quarter cash from operations was $68 million and free cash flow was $2 million, compared to $11 million and negative $63 million, respectively, in the first quarter of 2019.
New contract awards in the quarter were approximately $900 million, primarily driven by an award for the construction of guided missile destroyer Sam Nunn (DDG 133). As of March 31, 2020, backlog totaled approximately $45.2 billion.
NOTE: this is NOT the complete release.