Austal interim profit down 9%

Henderson-based shipbuilder Austal has turned in an interim net profit of $14.1 million, down 9 per cent on the previous half-year despite a 15 per cent rise in revenue.

Austal said its profit from revenue of $251.2 million was lower due to weaker sales at its domestic operations due to the strong Australian dollar and continued tough credit conditions.

The company will not pay a dividend for the half year.

Newly appointed chief executive Andrew Bellamy said Austal's rise in revenue was driven by "significant success" in the international defence sector.

In November, Austal won a lucrative contract to build 10 Littoral Combat Ships for the US Navy.

That deal followed an announcement in June that Austal had won a contract to build an additional two joint high speed vessels (JHSV) for the US Navy.

Austal already had contracts in place to deliver three of the vessels, with each boat worth about $225 million.

"Austal is also currently pursuing other significant defence tenders throughout the world which will benefit both our Australian and US businesses," Mr Bellamy said.

"The Littoral Combat Ship multi-vessel contract has the potential to deliver an average revenue stream of approximately $US600 million per annum from 2013 to 2017.

"In conjunction with the contribution of from the JHSV multi-vessel contract of approximately $US280 million per annum between 2012 and 2015, the group is positioned to deliver a consistent flow of predictable earnings results.

"Austal maintains a strong order book position, closing the half-year with work in hand of $1.2 billion."