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04 Aug 16. Huntington Ingalls Industries Reports Second Quarter 2016 Results. Huntington Ingalls Industries (HII) reported second quarter 2016 revenues of $1.7bn, down 2.6 percent from the same period last year. Diluted earnings per share in the quarter was $2.80, compared to $3.20 in the same period of 2015. Diluted earnings per share in the second quarter of 2015 included a favorable insurance litigation settlement of $1.80 per share and a goodwill impairment charge of $0.96 per share.
Operating income in the quarter was $217m, compared to $269m in the same period last year. Operating margin in the quarter was 12.8 percent, compared to 15.4 percent in the same period last year. Operating income and margin in the second quarter of 2015 included a favorable insurance litigation settlement of $136 m and a goodwill impairment charge of $59m. Adjusting for these items, adjusted operating income in the quarter increased $25m to $217 m from $192m in the second quarter of last year, and adjusted operating margin in the quarter increased 184 basis points to 12.8 percent, from 10.9 percent in the second quarter of 2015. These increases were primarily driven by strong operating performance at Ingalls Shipbuilding and the favorable FAS/CAS Adjustment.
New business awards for the quarter were approximately $900m, bringing total backlog to $20.5bn as of June 30, 2016.
“We delivered another quarter of solid operating results driven by strong program execution at Ingalls,” said Mike Petters, HII’s president and CEO. “We had a very strong first half of the year. However, the second half will be challenging at Newport News as we continue to work through the test program on CVN-78 Gerald R. Ford and get the ship ready for sea trials and delivery, while Ingalls focuses on delivering DDG-113 John Finn and NSC-6 Munro.” (Source: Yahoo!/GLOBE NEWSWIRE)
04 Aug 16. South Korean defence trader Posco Daewoo wants to expand in Indonesia. South Korean group Posco Daewoo, formerly the Daewoo International Corporation, has outlined an objective to expand defence collaboration with Indonesian industry. The Indonesian Ministry of Defence (MoD) said on 3 August that it had discussed potential collaborative programmes with Posco Daewoo and its visiting president and chief executive officer, Kim Young-Sang. Posco Daewoo is not a defence manufacturer but engages in exports and facilitates related collaboration activities on behalf of South Korean companies in sectors including defence, engineering, electronics, and metals. In Indonesia the company was behind the export in 2010 of the 6×6 Black Fox armoured personnel carrier, which is produced by Hanwha Defence (formerly Doosan DST).(Source: IHS Jane’s)
03 Aug 16. Cobham H1 results, Edison view: “Cobham trading improved significantly in Q2, albeit half year trading profit of £102m was sharply lower. Hopefully 2017 should start to refresh organic growth and reputation as defence and security markets improve.”
Andy Chambers, analyst at Edison Investment Research, said: “Cobham trading improved significantly in Q2, albeit half year trading profit of £102m was sharply lower (-36%) due to the previously announced very weak Q1 performance (trading profit of £15m). The Q2 trading was further supported by a strong order intake with a book to bill ratio of 1.64x (H1 1.28x), and a reasonable cash performance given the lower H1 trading. The 21% interim dividend cut to 2.03p is consistent with the rebalancing to the lower annual dividend of 7.4p previously announced. The company needs to restore credibility following the rights issue and at least the first report appears to allow management to maintain current expectations, although a strong H2 is still requ