Austal investigation expands to US
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US federal agents have conducted a search at Austal’s offices in Mobile, Alabama, in relation to an inquiry by the Australian Securities and Investments Commission into announcements the shipbuilder made in late-2015 and mid-2016.
In a statement to the ASX, Austal said it was cooperating with US authorities with investigations that are “separate but related” to the Asic inquiry of market announcements the company made in regards to earnings from its littoral combat ship program in the US.
In December 2015, the Henderson-based company disclosed likely cost increases and margin pressure on its littoral combat ship program for the US Navy, which led to a 25 per cent fall in its share price to about $1.70 per share.
Chief executive David Singleton disclosed the nature and scale of Austal’s US problems in July 2016.
The detailed update included the disclosure of a $156 million write-back of work in progress.
In other news, Austal announced late Friday it had secured a US$16.3 million ($22.8 million) contract from the US Navy for extended industrial post-delivery availability of the littoral combat ship USS Cincinnati.
Austal employs about 4,000 people in Mobile.
Shares in Austal were down 1.64 per cent to trade at $2.10 each at 3pmAEDT.