Austal Limited
(ASX:ASB) has cut FY2016 earnings from its US shipyard following schedule and margin pressure on the company’s Littoral Combat Ship program.
Austal chief executive officer Andrew Bellamy said the program was maturing more slowly than expected due to flow on effects.
The company said that as a result FY2016 earning’s from Austal’s US shipyard are expected to be lower than in FY2015, with US shipbuilding EBIT margin expected to be in the range of 4.5 percent to 6.5 percent.
Mr Bellamy added that Austal is generating good cashflow and expects improvement across the program after delivery of LCS 10.
Austal recorded a net profit of $53.15 million at 30 June 2015.
