Huntington Ingalls Industries, the parent company of Newport News Shipbuilding, reported second-quarter 2020 revenues of $2.0 billion, down 7.4 percent from the second quarter of 2019. Operating income in the quarter was $57 million and operating margin was 2.8 percent, compared to $175 million and 8.0 percent, respectively, in the same period last year.
The decreases in the quarter were primarily driven by unfavorable cumulative catch-up adjustments totaling $167 million resulting from updated cost and schedule assumptions across all programs, a corporate release stated. This includes $61 million resulting from discrete COVID-19 related delay and disruption estimates across all programs, including impacts from lower employee attendance, availability of critical skills, and out-of-sequence work, attributable to, among other things, orders of civil authorities associated with COVID-19 and steps taken to mitigate the effects ofCOVID-19.
Net earnings in the quarter were $53 million...
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