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On Wednesday, the Chief Executive Officer (CEO) of Huntington Ingalls Industries, Inc, Mike Petters said he still remains committed in a longer-term perspective of the company’s business prospects, regardless the increasing market pressures that focus on short-term profits.
The CEO told the Atlantic Council that such long-term view had motivated the shipbuilder business to invest in probable new business areas within the energy sector as well as the building of on-site health centers within its facilities.
Petters also said that Huntington was thriving in balancing the demands from its shareholders for dividend growths, including share buybacks in a market that is driven by a high-frequency trading, with long-term investment plans and needs of a group that creates ships, which will be used by the United States Navy until 2070.
The investments that are aimed towards organic growth should return greater dividends eventually, however, not generally add to the views that escalate share prices, Petters said.
The CEO, also a previous Naval officer, said last week that fixed across-the-board budget slashes had also reduced businesses’ willingness in investing in Research and Development programs, considering the uncertainty that such spending will pay off eventually.
On Wednesday, shares of Huntington dropped 3% or 3.50 dollars to close at 104.21 dollars on the NYSE, while Dow Jones Defense Index fell nearly 2%.
