Huntington Ingalls reports sales increase, profit decline in 2017

Huntington Ingalls said today sales in 2017 reached $7.4 billion, up about 5 percent from a year earlier.

The contractor's profit for the year hit $479 million, down about 16 percent from the prior year.

Huntington Ingalls' sales were buoyed by its acquisition of Camber. The technical solutions unit, which includes Camber, reported revenues for the year of $952 million, up nearly 38 percent from 2016.

The unit's profit in 2017 hit $21 million, up from $8 million in 2016. "This increase was primarily due to improved performance in oil and gas services and higher volume in integrated missions solutions services following the December 2016 acquisition of Camber," the company said.

Mike Petters, Huntington Ingalls' chief executive, told analysts in a morning call the company plans to use the savings from new tax legislation to invest in its facilities, its employees and its charitable contributions.

The company announced several years ago it intends to invest $1.5 billion of capital in shipbuilding through 2020. Now, Huntington Ingalls will add $300 million to that plan, Petters said.

"These funds are designated for facility improvements that expand operational capacity at Ingalls [Shipbuilding] and for investments in digital tools to improve operational efficiencies at Newport News [Shipbuilding]," he told analysts.

Additionally, Petters said Huntington Ingalls will provide $500 to each hourly and salaried employee and will increase its charitable giving.