Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q3 2011 Earnings Presentation
11 slides from Huntington Ingalls Industries's earnings presentation, Nov 10, 2011
Slide 1: Q3 2011 Earnings Presentation
Exhibit 99.2 Q3 2011 Earnings Presentation November 10, 2011 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 release, 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 diff
Slide 3: Highlights from the Quarter
Highlights from the Quarter Adjusted diluted EPS* of $1.05 Total adjusted operating margin* improved to 6.9% from 4.6% last year and up sequentially from 5.8% Newport News operating margin was 10.7%, up 1.0% over last year and up sequentially from 9.1% Ingalls adjusted operating margin* was 2.6% up
Slide 4: Third Quarter 2011 Consolidated Results
Third Quarter 2011 Consolidated Results * Adjusted for non-cash goodwill impairment charge. See Appendix for reconciliation to the operating income, operating margin and net loss per 4 share determined under GAAP
Slide 5: Ingalls Shipbuilding
Ingalls Shipbuilding Ingalls sales were down YoY due to lower volumes on DDG-51 program, partially offset by higher volume on NSC program Adjusted segment operating income* improved over last year due to lower net unfavorable performance adjustments in 2011 * Adjusted for non-cash goodwill impairmen
Slide 6: Newport News Shipbuilding
Newport News Shipbuilding Newport News sales were down YoY due to lower volumes on Ford & Roosevelt RCOH, partially offset by Lincoln RCOH planning effort & construction contract for Kennedy Segment operating income and operating margin increased due to positive performance adjustments on Virginia-c
Slide 7: 2012 Net Pension Adjustment
2012 Net Pension Adjustment 2011 YTD actual return on plan assets is 6.5% as of October 31, 2011 Based on the current environment, for 2012, we expect: o FAS discount rate of 5.25% to 5.50% o Net OPEB expense of approximately $15 million o Net cash pension contributions of $75 million to $100 millio
Slide 8: Appendix
Huntington Ingalls rey e Appendix
Slide 9: Reconciliations
Reconciliations We make reference to “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.” Segment operating income is defined
Slide 10: Reconciliation of Non-GAAP Measure – Segment Operating Income
Reconciliation of Non-GAAP Measure – Segment Operating Income Three Months Ended September 30 $ in millions 2011 2010 Sales and Service Revenues Ingalls $ 740 $ 759 Newport News 876 $ 928 Intersegment eliminations (23) (22) Total sales and service revenues $ 1,593 $ 1,665 Operating Income (Loss) Ing
Slide 11: Reconciliation of Non-GAAP Measure – Adjusted Figures
Reconciliation of Non-GAAP Measure – Adjusted Figures Three Months Ended September 30 $ in millions 2011 2010 Sales and Service Revenues Ingalls $ 740 $ 759 Newport News 876 $ 928 Intersegment eliminations (23) (22) Total sales and service revenues $ 1,593 $ 1,665 Adjusted Operating Income (Loss) In
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