Huntington Ingalls Industries Inc. (HII) has reported a 12.50 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $119 million, or $2.56 a share in the quarter, compared with $136 million, or $2.87 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $87 million, or $1.87 a share compared with $113 million or $2.38 a share, a year ago.
Revenue during the quarter went down marginally by 2.21 percent to $1,724 million from $1,763 million in the previous year period. Gross margin for the quarter contracted 212 basis points over the previous year period to 16.88 percent. Total expenses were 90.49 percent of quarterly revenues, up from 88.77 percent for the same period last year. That has resulted in a contraction of 172 basis points in operating margin to 9.51 percent.
Operating income for the quarter was $164 million, compared with $198 million in the previous year period.
"I am pleased with our performance at both Ingalls and Newport News and the progress we are making at our newly created services organization, Technical Solutions" said Mike Petters, HII's president and chief executive officer. "We are executing well on our shipbuilding programs and are focused on the integration and operations of our services organization."
Operating cash flow improves significantly
Huntington Ingalls Industries Inc. has generated cash of $98 million from operating activities during the quarter, up 81.48 percent or $44 million, when compared with the last year period.
The company has spent $58 million cash to meet investing activities during the quarter as against cash outgo of $37 million in the last year period.
The company has spent $152 million cash to carry out financing activities during the quarter as against cash outgo of $118 million in the last year period.
Cash and cash equivalents stood at $608 million as on Mar. 31, 2017, down 23.33 percent or $185 million from $793 million on Mar. 31, 2016.
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