Oct 31 (Reuters) - The largest U.S. military shipbuilder

Huntington Ingalls on Thursday cut its 2024

shipbuilding revenue due to uncertainty in navy agreements,

supply chain issues and labor shortages, sending its shares down

roughly 7% premarket.

The company forecasts shipbuilding revenue, which is the

focus of two of its three divisions, will likely be near the

lower end of its previously projected range of $8.8 billion to

$9.1 billion.

Huntington had expected to reach an agreement with the U.S.

Navy for Virginia-class Block V and Block VI and Columbia-class

submarines in the second half of 2024.

However, CEO Chris Kastner cited "some uncertainty emerged

about the timing of that agreement", prompting the company to

update its profitability and cash flow assumptions.

Despite the rising demand for submarines and aircraft

carriers, fueled by China's expanding naval footprint and high

global tensions, Huntington Ingalls has not been able to

capitalize on it due to persistent problems in retaining

shipyard labor.

For the third quarter, Huntington's per-share profit was

$2.56, down from $3.70, a year ago. Revenue also declined 2.4%

to $2.7 billion.