Austal forecasts FY16 loss

Company News

by Jessica Ellerm

 
Austal Limited (ASX:ASB) has announced it expects to record an EBIT loss of between $116 million to $121 million for FY16.
 
The loss is primarily driven by a US$115 million write back of work in progress related to its Littoral Combat Ship program with the US Navy.
 
Revisions to the baseline design of its combat ships to ensure they meet shock rating standards for the US Navy is said to be behind the rise in costs. 
 
The company is projecting FY17 EBIT of between $45 million to $55 million and to declare a final dividend of 2 cents per share.
 
Austal Limited reported a net profit of $16.81 million at 31 December 2015.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?