Huntington Ingalls reports sales boost

Huntington Ingalls said today sales in its most recent quarter hit $2 billion, up almost 9 percent from the same three-month period a year earlier.

The contractor's quarterly profit reached $239 million, up 63 percent from the prior year.

Huntington Ingalls' sales boost was driven by Newport News Shipbuilding, which reported quarterly sales of nearly $1.2 billion, up 18 percent from the same period a year earlier.

The business reported improved aircraft carrier sales as a result of "increased volumes on the execution contract for the refueling and complex overhaul (RCOH) of USS George Washington (CVN-73), the construction contract for John F. Kennedy (CVN-79) and the advance planning contract for Enterprise (CVN 80)."

Additionally, the business saw boosts in naval nuclear support services revenues, driven by "higher volumes in submarine support and facility maintenance services."

Huntington Ingalls reported that sales in its technical solutions group were $243 million, essentially flat from the prior year. The company said the unit saw lower sales in integration mission solutions, fleet support and nuclear and environmental work, but higher oil and gas services revenue.

Mike Petters, Huntington Ingalls' chief executive, said during a call with analysts today the contractor is optimistic about the environment, but wants to see some of the expected opportunities turn into real sales.

"This is the most exciting time that I've seen in shipbuilding in 30 years," he said, but warned that it's not yet clear whether it will be a temporary surge or a long-term shift.

"Is this an indication of a new sustained level for the business or is it just going to be the rat in the snake where we have a lump in the business?" Petters said. "The job right now is to get the lump under contract, and then we figure out how do we keep it at that sustained level."