Shipmaker Huntington Falls on Profit Miss: Washington Mover

Huntington Ingalls Industries Inc. (HII) fell after the U.S. Navy’s sole builder of aircraft carriers reported third-quarter profit that missed analysts’ estimates.

Huntington, based in Newport News, Virginia, declined 5 percent to close at $41.29 in New York trading. The shares dropped 3.3 percent yesterday after President Barack Obama won re-election and defeated Mitt Romney, who had proposed increasing military spending. The two-day drop is the most since Sept. 29, 2011.

Profit fell to $37.1 million, or 74 cents a share, in the quarter ended Sept. 30 from $51.3 million, or $1.05, in the year-earlier period. Analysts had predicted per-share profit of 80 cents, the average of 13 estimates compiled by Bloomberg.

“Underperforming ships at Ingalls continue to prove challenging,” Chief Executive Officer Mike Petters said in a statement.

Sales totaled $1.6 billion in the quarter, with less-than- expected revenue from amphibious assault ships. Analysts predict 2012 sales to increase 1 percent to $6.63 billion.

Separately, the company announced its first quarterly dividend, at 10 cents a share, and plans to buy back as much as $150 million of shares over three years.

To contact the reporter on this story: Brendan McGarry in Washington at

To contact the editor responsible for this story: Stephanie Stoughton at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.