Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q4 2011 Earnings Presentation
12 slides from Huntington Ingalls Industries's earnings presentation, Mar 28, 2012
Slide 1: Q4 2011 Earnings Presentation
Exhibit 99.2 Q4 2011 Earnings Presentation March 28, 2012 Mike Petters President and Chief Executive Officer Barb Niland Corporate Vice President, Business Management & Chief Financial Officer
Slide 2: Safe Harbor
Safe Harbor Statements in this presentation, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to
Slide 3: Highlights from the Quarter and FY 2011
Highlights from the Quarter and FY 2011 Adjusted diluted EPS* of $1.19 for the fourth quarter and $3.97 for the year Total adjusted operating margin* for the fourth quarter improved to 6.6% from 6.0% in Q4 2010; full year adjusted operating margin* increased to 6.1% from 3.7% in 2010 Q4 Newport News
Slide 4: Fourth Quarter and FY 2011 Consolidated Results
Fourth Quarter and FY 2011 Consolidated Results * Adjusted for non-cash goodwill impairment charge. See Appendix for reconciliation to the operating income, operating margin and net earnings 4 per share determined under GAAP
Slide 5: Ingalls Shipbuilding
Ingalls Shipbuilding Ingalls Q4 sales were down YoY due to lower volumes on DDG-51 program and LPD program, partially offset by higher volume on NSC and LHA programs, and LPD-27 Q4 adjusted segment operating income* was up YoY driven by improved performance on the LPD program and new contracts * Adj
Slide 6: Newport News Shipbuilding
Newport News Shipbuilding Newport News sales were up in Q4 as compared to Q4 2010 due to higher volumes on Ford, Kennedy, Lincoln RCOH planning effort & the VCS program, partially offset by Roosevelt RCOH, the Enterprise EDSRA and the PSA for Bush Segment operating income and margin decreased due to
Slide 7: 2012 Pension Assumptions
2012 Pension Assumptions ($ in millions) 2011 2012 Discount Rate 5.84% 5.23% Asset Returns 8.50% 8.00% Cash Contributions (1)(2) $36 $254 Net FAS/CAS Adjustment (1)(2) ($13) ($77) CAS(1)(2) $144 $143 FAS(1) ($157) ($220) (1) Includes pension and other post retirement benefits. (2) Projection; subjec
Slide 8: Appendix
Appendix Hi
Slide 9: Reconciliations
Reconciliations We make reference to “free cash flow,” “segment operating income,” “adjusted segment operating income,” “adjusted segment operating margin,” “adjusted operating income,” “adjusted operating margin,” “adjusted net earnings,” and “adjusted diluted earnings per share.” Free cash flow re
Slide 10: Reconciliation of Non-GAAP Measure – Free Cash Flow
Reconciliation of Non-GAAP Measure – Free Cash Flow Three Months Ended Year Ended December 31 December 31 $ in millions 2011 2010 2011 2010 Net cash provided by (used in) operating activities $ 474 $ 208 $ 528 $ 359 Less: Capital expenditures (78) $ (95) (197) $ (191) Free cash flow from operations
Slide 11: Reconciliation of Non-GAAP Measure – Segment Operating Income
Reconciliation of Non-GAAP Measure – Segment Operating Income Three Months Ended Year Ended December 31 December 31 $ in millions 2011 2010 2011 2010 Sales and Service Revenues Ingalls $ 676 $ 727 $ 2,885 $ 3,027 Newport News 1,078 1,027 $ 3,766 $ 3,775 Intersegment eliminations (19) (18) (76) (79)
Slide 12: Reconciliation of Non-GAAP Measure – Adjusted Figures
Reconciliation of Non-GAAP Measure – Adjusted Figures Three Months Ended Year Ended December 31 December 31 $ in millions 2011 2010 2011 2010 Sales and Service Revenues Ingalls $ 676 $ 727 $ 2,885 $ 3,027 Newport News 1,078 $ 1,027 3,766 $ 3,775 Intersegment eliminations (19) (18) (76) (79) Total sa
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