US naval shipbuilder Huntington Ingalls reported results from the first quarter of its 2018 financial year on 3 May, with figures showing swift growth of both revenues and operating income.
Sales reached USD1.87 billion in the three months ending 31 March, a rise of 8.7% year on year, while income growth was even more positive at 13.7%, taking it to USD191 for the quarter. However, the majority of this improvement to earnings was due to a favourable adjustment in the reporting of pension expenses; both of the company’s main shipbuilding businesses registered a reduction in operating income.
The larger of the two segments by revenue, Newport News Shipbuilding, which specialises in the construction and overhaul of nuclear-powered aircraft carrier and submarines for the US Navy, generated USD1,082 million in revenue in the first quarter, up 11.5%, although operating income fell by 29.2% year on year to USD51 million.
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