Austal has projected a marginal decrease in earnings this financial year on the back of an expected $200 million dip in revenue.
Austal has projected a marginal decrease in earnings this financial year on the back of an expected $200 million dip in revenue.
That's according to the Henderson-based shipbuilder's latest earning guidance, which shows the company expecting to earn $125 million from $1.8 billion in revenue this financial year.
The ASX-listed contractor revealed in August that it had earned $130 million from $2 billion in revenue this past financial year, owing to a bevy of defence contracts in the US.
Austal at the time said it would delay releasing its earnings guidance until this month due to the economic uncertainty caused by the COVID-19 pandemic.
While acknowledging that earnings and revenue would likely decrease marginally this financial year, the shipbuilder told shareholders that improved margins from the company’s US and Australasian operations would offset a decline in revenue.
Other factors for the lower figures include the appreciation of the Australian dollar against the US dollar and reduced throughput compared to this past financial year.
Half-yearly results are expected in February.
Today’s announcement comes after Austal acquired BSE Maritime Solutions for $28 million in a bid to boost the shipbuilder’s share of maintenance and support work.
Shares in Austal were trading at $2.69 at 13:30AEDT, down $0.11 on opening.
