HHI Reports Q2 Results
Huntington Ingalls Industries (NYSE: HII) reported second quarter 2019 revenues of $2.2 billion, up 8.3% from the second quarter of 2018. The increase was driven primarily by growth at HII’s Technical Solutions division from recent acquisitions and higher volume at HII’s Newport News Shipbuilding division.
Operating income in the quarter was $175 million and operating margin was 8.0%, compared to $257 million and 12.7%, respectively, in the second quarter of 2018. The decreases in operating income and operating margin were mainly the result of lower segment operating income, as well as an unfavorable change in the operating FAS/CAS adjustment compared to the prior year.
Diluted earnings per share in the quarter was $3.07, compared to $5.40 in the same period of 2018. The decrease was predominantly due to lower operating income, an unfavorable change in the non-operating retirement benefit and a higher effective income tax rate compared to the prior year.
Second quarter cash from operations was negative $44 million and free cash flow1 was negative $135 million, compared to positive $239 million and positive $154 million, respectively, in the second quarter of 2018.
New contract awards in the quarter were approximately $900 million, bringing total backlog to approximately $39.4 billion as of June 30.