Huntington Ingalls Names New President for Newport News Shipbuilding

 

Huntington Ingalls Industries has announced the retirement of longtime Newport News Shipbuilding president Jennifer Boykin, who has run the nation's premier nuclear-vessel shipyard since 2017. She will be replaced by Kari Wilkinson, the longtime head of HII's Ingalls Shipbuilding division, effective January 1.

"I have asked Jennifer to stay on in an advisory capacity through March to support a seamless transition to Kari," HII CEO and President Chris Kastner said in a statement. "You will not find a more loyal advocate than Jennifer for her shipbuilders and the Hampton Roads community."

The transition takes place amidst challenges at Newport News, including an ongoing federal probe into faulty welds on NNS-built subs and carriers. That probe has expanded to cover 26 ships, and is believed to involve noncompliant work by roughly two dozen NNS employees. The Justice Department and the Navy are leading an inquiry into the extent of the issue and any potential criminal wrongdoing. HII has emphasized that the poor welds were an intentional departure from correct procedure, but were not malicious. 

In a statement last month, Boykin said that HII workers self-reported the problem themselves through a company tip line. "We do not tolerate any conduct that compromises our company’s values and our mission of delivering ships that safeguard our nation and its sailors," she said in a statement. "[We will] determine the root causes, bound the issue and put in place immediate short-term corrective actions as we work through longer-term solutions."

HII also posted lower operating income in the third quarter, driven "primarily by performance at Newport News Shipbuilding." This included uncertainty in the timing and structure of new orders for 17 submarines in the Virginia-class and Columbia-class programs, prompting a downward adjustment in profit projections. Chronic delays in HII's supply chain for parts and materials have also increased cost, and long-running issues with retirements and turnover have left the workforce with "reduced experience levels," resulting in "labor inefficiency, and in some cases to rework." 

On Wednesday, Huntington Ingalls' share price rose five percent after news of the leadership transition. The change coincides with a generational shift in Washington, where a Republican-led administration could make substantial changes to shipbuilding investments.