Huntington Ingalls reports sales, profit boosts

Huntington Ingalls said today that sales in 2015 hit $7 billion, up about 1 percent from the prior year. Profit for the year reached $404 million, up close to 20 percent from 2014.

However, the contractor reported that in its most recent quarter it took a non-cash goodwill impairment charge of $16 million as a result of "continued deterioration of market fundamentals" in the oil and gas services industry. Additionally, Huntington Ingalls recorded a non-cash intangible asset impairment charge of $27 million in the quarter related to customer relationships as well as trade names and developed technology.

In 2014, Huntington Ingalls bought UniversalPegasus International, which provides engineering and project management services to the energy industry.

Mike Petters, chief executive, said during a call with analysts this morning the company is seeking to ensure that UPI is positioned for the future -- despite the continued slide in the price of oil.

"Our commitment here is to maintain the relationships we have with those critical customers out there that are in that space, and that means that we've got to preserve capabilities that those customers are going to need," he said.

However, he acknowledged the market is less than ideal.

"The dynamics in that marketplace have been pretty volatile," Petters told analysts. "I wish it were different."