23/02/2009 - 09:46

Austal books 43% fall in H1 net profit

23/02/2009 - 09:46

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Henderson shipbuilder Austal expects revenue and profit to continue its downward trend in the second half of fiscal 2009, as it reports a 43 per cent fall in first half net profit.

Henderson shipbuilder Austal expects revenue and profit to continue its downward trend in the second half of fiscal 2009, as it reports a 43 per cent fall in first half net profit.

In its interim report released today, Austal booked a $16.9 million net profit, down from the previous corresponding period's $29.9 million.

The company said the lower net profit was due to costs resulting from increasing costs to administer military contract compliance, higher tendering costs and provisions for doubtful debts.

The lower profit result was on the back of a 12 per cent fall in revenue from $332.9 million to $294.3 million.

"The impact of the global financial crisis has resulted in the delay of several sales prospects due to restrictive funding availability," Austal said in its report.

"Austal expects reduced revenue and decreased profits to continue in the second half of the year."

During the first half of fiscal 2009, Austal's Alabama base started construction on the first stage of the modular manufacturing facility, to be used for the building of the Joint High Speed Vessel for the US government.

Construction of the vessel is due to start early next financial year.

Austal expects to learn in the coming months whether it has secured the contract for the construction of the next Littoral Combat ship from the United States Navy and the next two Joint High Speed Vessels from the US Government.

At the end of the reporting period, the company had $135.6 million in cash and cash equivalents, down from $304 million from the prior corresponding period.

Shares in Austal were down 19 cents or 10 per cent to $1.65 at 11:55 AEDT.

 

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