July 31 (Reuters) - U.S. military shipbuilder Huntington

Ingalls reported second-quarter results above Wall

Street estimates on Thursday, as production issues ease at its

shipyards and demand booms for submarines.

The company's shares rose about 5% in premarket trading.

Huntington is a prime contactor for the U.S. Navy's

nuclear-powered Columbia-class submarines and makes

Virginia-class submarines at its Newport News Shipbuilding

facility.

Huntington's output has suffered in recent quarters due to

persistent problems in retaining skilled shipyard labor, despite

China's expanding naval footprint and high global tensions

keeping demand for submarines and aircraft carriers high.

"We have seen early signs that targeted investments are

helping to stabilize the workforce and supply chain, in support

of the broader maritime industrial base," CEO Chris Kastner said

in a statement.

U.S. President Donald Trump's push to revitalize American

shipbuilding to deter China is also expected to boost sales for

companies like Huntington.

It posted a second quarter per-share profit of $3.86,

surpassing analysts' average estimate of $3.28, according to

data compiled by LSEG.

Its sales and services revenue rose 3.5% to $3.08 billion in

the quarter, also topping expectations of $2.93 billion.