Huntington Ingalls Industries, the military shipbuilder which is also the parent company of Savannah River Site contractor Stoller Newport News Nuclear, used its quarterly earnings call last week to tout the success of a SN3-BWX Technologies joint venture in landing a cleanup contract in December.
“[T]he team secured a key win as a part of the LLC that was selected to perform the Los Alamos National Laboratory Legacy Cleanup Contract,” Mike Petters, Huntington Ingalls Industries (HII) president and chief executive, said on the Thursday earnings call. “That contract is valued at $1.4 billion over a period of 10-years and provides another opportunity to partner with the Department of Energy [DOE] on a very important long-term project.”
In January the joint venture, Newport News Nuclear BWXT-Los Alamos, received permission from DOE’s Office of Environmental Management to begin its 90-day transition period. The joint venture will take over from Los Alamos National Security: a group led by the University of California and chief corporate partner Bechtel National, with industry team mates AECOM and BWX Technologies.
HII reported roughly $2 billion in revenue for the fourth quarter of 2017, up 3.9 percent from the fourth quarter of 2016, when the revenue was $1.92 billion. Operating income for the quarter was $227 million, which was down more than 15 percent from the $268 million reported for the same quarter a year earlier.
Earnings per share for the quarter were listed at $ 1.41, down from $4.20 a share in the fourth quarter of 2016. The numbers were affected by a one-time debt expense, some tax changes and accelerated pension contributions in 2018.
HII’s Technical Solutions group, which includes the nuclear and environmental segment, posted $242 million in revenue for the quarter: up 30.1 percent from $186 million in the 2016 quarter. Operating income for the fourth quarter was $8 million, compared with $1 million in fourth quarter 2016, driven in part by better performance in nuclear and environmental services, the parent company said.
