Huntington Ingalls Industries Inc (HII) has reported a 3.60 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $107 million, or $2.27 a share in the quarter, compared with $111 million, or $2.29 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $83 million, or $1.76 a share compared with $96 million or $1.98 a share, a year ago.
Revenue during the quarter dropped 6.50 percent to $1,683 million from $1,800 million in the previous year period. Gross margin for the quarter contracted 34 basis points over the previous year period to 18.78 percent. Total expenses were 89.60 percent of quarterly revenues, up from 88.89 percent for the same period last year. That has resulted in a contraction of 71 basis points in operating margin to 10.40 percent.
Operating income for the quarter was $175 million, compared with $200 million in the previous year period.
However, the adjusted operating income for the quarter stood at $175 million compared to $200 million in the prior year period. At the same time, adjusted operating margin contracted 71 basis points in the quarter to 10.40 percent from 11.11 percent in the last year period.
“Our third quarter financial results reflect solid overall operating performance, driven by program execution at Ingalls,” said Mike Petters, HII’s president and chief executive officer. “Given our strong year-to-date performance, and despite challenges at Newport News, we expect 2016 revenues and operating margin to be relatively similar to 2015.”
Operating cash flow improves
Huntington Ingalls Industries Inc has generated cash of $477 million from operating activities during the nine month period, up 11.45 percent or $49 million, when compared with the last year period.
The company has spent $141 million cash to meet investing activities during the nine month period as against cash outgo of $39 million in the last year period.
The company has spent $273 million cash to carry out financing activities during the nine month period as against cash outgo of $708 million in the last year period.
Cash and cash equivalents stood at $957 million as on Sep. 30, 2016, up 42.62 percent or $286 million from $671 million on Sep. 30, 2015.
Working capital remains almost stable
Huntington Ingalls Industries Inc has witnessed a decline in the working capital over the last year. It stood at $1,116 million as at Sep. 30, 2016, down 0.80 percent or $9 million from $1,125 million on Sep. 30, 2015. Current ratio was at 1.91 as on Sep. 30, 2016, up from 1.87 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 53 days for the quarter from 66 days for the last year period. Days sales outstanding went down to 63 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 20 days for the previous year period. At the same time, days payable outstanding went up to 19 days for the quarter from 18 for the same period last year.
Debt comes down marginally
Huntington Ingalls Industries Inc has recorded a decline in total debt over the last one year. It stood at $1,277 million as on Sep. 30, 2016, down 2.15 percent or $28 million from $1,305 million on Sep. 30, 2015. HUNTINGTON INGALLS INDUSTRIES has recorded a decline in long-term debt over the last one year. It stood at $1,277 million as on Sep. 30, 2016, down 2.15 percent or $28 million from $1,305 million on Sep. 30, 2015. Total debt was 21.25 percent of total assets as on Sep. 30, 2016, compared with 21.60 percent on Sep. 30, 2015. Debt to equity ratio was at 0.77 as on Sep. 30, 2016, down from 0.88 as on Sep. 30, 2015. Interest coverage ratio improved to 9.21 for the quarter from 8 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
