18/07/2013 - 13:32

Austal upgrades profit guidance

18/07/2013 - 13:32

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Austal chief executive officer Andrew Bellamy

Ship builder and defence contractor Austal has upgraded its after-tax profit guidance for the 2012-2013 financial year to between $35 million and $40 million.

Its shares rose 5.5 per cent after the announcement, to 87 cents, following previous guidance that its profit after tax would be in the range of $23 million to $26 million.

The global company, which has its head office in Henderson, said the reason for the increased profit was because it hadn't factored in non-cash tax credits for previous years' research and development costs.

Austal confirmed its full-year EBITDA guidance would be in the range of $65 million to 71 million, excluding the impact of its stock boats, consistent with previous guidance.

Austal chief executive officer Andrew Bellamy said the company had continued to deliver on the operational improvements that had driven improved EBITDA in the second half of the financial year.

"While the tax benefit is a boost to our bottom line, it is simply the recognition of non-cash tax credits from prior years," Mr Bellamy said in a statement.

"It is pleasing however that the operational improvements and efficiencies that management and staff have driven across our businesses have been sustained throughout the year." 

Full-year results will be presented by the company on August 29.

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