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.
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