Austal ups profit forecasts on Australasian gains

Perth shipbuilder Austal (ASX:ASB) has boosted its profit forecasts on strong gains from its Australasian ship building yards.

While the company said its Alabama yard was still performing strongly with orders for two ship classes for the US Navy, it said multi-hull ferry building was now increasing on its new regional investments.

Austal expects an EBIT of more than $105 million in the 2020 financial year.

Profit this year should be around a previously expected $92 million.

“…the increase largely driven by improvement from Austal’s Australasia shipyards.”

Austal recently trebled capacity at its Philippines shipyard, as reported in @AuManufacturing news.

The company also revealed it had established a second leased shipyard in Vietnam.

Austal is now actively managing operational risks at the two yards.

“The extent of earnings growth from Austal Australasia will become clearer as the commercial ferry contracts are completed.”

Picture: Austal Philippines

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