27/08/2014 - 12:38

Austal profit down despite record revenue

27/08/2014 - 12:38

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Shipbuilder Austal reported an 11 per cent fall in full-year profit to $31.9 million, despite record revenue and a reduction in debt.

Austal profit down despite record revenue
The US Navy's first trimaran littoral combat ship, the future USS Independence (LCS 2), during builder's sea trials in the Gulf of Mexico July 2009.

Shipbuilder Austal reported an 11 per cent fall in full-year profit to $31.9 million, despite record revenue and a reduction in debt.

The company reported a record revenue, up 24.6 per cent $1.2 billion, up from $899.5 million last year, exceeding market guidance.

Austal said it used strong cash flow generated during the year to reduce net debt by 50 per cent to $68.5 million.

Austal chief executive officer Andrew Bellamy said the company had paid off $109.9 million in debt in the last two years.

“We have worked hard over the years to drive operational improvement across our long-term defence contracts,” he said.

“This included implementing operational efficiencies and management structures across the group that would support the productive delivery of those contracts.

“We are now seeing the rewards of that process, with shipbuilding margins increasing across the group as the vessel programs mature, driving increased earnings on our record revenue.”

Austal said its order book for the next year has more than doubled to $2.8 billion.

Earlier in the week, Austal said it had won a $100 million joint contract with General Dynamics to maintain littoral combat ships for the US Navy.

“With the deployment of Austal-built defence vessels, we also have an enhanced ability to incrementally increase earnings through our global service offering,” Mr Bellamy said.

The company is yet to declare dividend payouts but said it would do so in the near future.

Austal’s share price rose by 9.3 per cent to $1.25 per share at 12:30pm.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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