Austal raises profit guidance, performing strongly

Strong business performance and the high US$ have enabled Perth international shipbuilder to substantially increase both sales and prfoit expectations for the year.

The company expects group EBIT of $125 million for the year, up $15 million on previous estimates.

This is likely to be struck on revenue up $100,000 to $2 billion for FY2020.

Chief executive David Singleton said: “Austal’s strong performance across our shipyards in the USA, Australia, Philippines and Vietnam during the Covid-19 pandemic has provided confidence to increase the company’s earnings guidance at this time.”

He said several factors combined to move expectations for the business, which is a major US Navy prime contractor:

# the limited impact of the pandemic on operations

# new vessel construction contracts won for the Perth shipyard

# recognition of R&D tax credits in the US

# and the US dollar strength which increases the value of US Navy profits in Australian currency.

Picture: Austal

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