UK’s $1 billion AUKUS support request signals strong ongoing US collaboration
The latest foreign military sales request from the UK has implications for the future of the programme and collaboration between the three nations.
HII struggles to grow despite Alion acquisition
Ingalls Shipbuilding successfully completed acceptance trials for the US Coast Guard’s ninth National Security Cutter. (Photo: Huntington Ingalls Industries)
Huntington Ingalls Industries has released its Q3 2021 report, showing limited growth from Q3 2020.
Operating income for Huntington Ingalls Industries (HII) in the Q3 2021 was $118 million and the operating margin was 5%, marking a fall from the Q3 2020 figures of $222 million operating income and 9.6% operating margin.
The decrease in operating income and operating margin were primarily the result of a less favourable operating FAS/CAS adjustment (the difference between expenses for pensions and other post-retirement benefits and the expenses included in operating income).
Net earnings in Q3 2021 reached $147 million, compared to $222 million in Q3 2020. Diluted earnings per share in the the quarter were $3.65, compared to $5.45 in the same period of 2020.
This reduction can also be attributed to lower revenues from existing programmes such as the Legend-class National Security Cutter, the Arleigh Burke-class guided-missile destroyer and amphibious assault ships.
New contract awards for HII in Q3 2021 totalled approximately $600 million, bringing the total backlog to approximately $50.1 billion as of 30 September 2021.
Moreover, the acquisition of Alion Science and Technology — and major contract awards such as a recent $273 million USN maintenance contract — indicate strong potential for growth in Q4.
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