26/08/2015 - 12:53

US operations boost Austal profit

26/08/2015 - 12:53

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Shipbuilder Austal grew net profit after tax almost 70 per cent in the past financial year, to $53.1 million, on the back of improved margins.

US operations boost Austal profit
The Littoral Combat Ship.

Shipbuilder Austal grew net profit after tax almost 70 per cent in the past financial year, to $53.1 million, on the back of improved margins.

For the year to June 30, Austal revenue was $1.4 billion, well above initial guidance of $1.2 billion.

That was largely driven by the company’s US operations, which delivered around $1.1 billion revenue and an EBIT of $58.4 million.

The company’s shipyard in Mobile, Alabama, is conducting work on two major US naval contracts, the littoral combat ship and joint high speed vessels.

Austal chief executive Andrew Bellamy said the company had an order book of $3.1 billion through to 2020.

He said the company would have further opportunities in the US and would benefit from the recent Australian federal government announcement of the move to continuous shipbuilding.

The good results come just days after Prime Minister Tony Abbott said he felt South Australia would benefit if it had the “spirit of Western Australian shipbuilding”.

The comments at the Liberal Party’s state conference follow a concerted campaign in some circles for WA to be given naval work as the economy transitions away from energy developments.

Austal was down 1 per cent to $1.87 at the time of writing, up more than 50 per cent in the past 12 months.

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