Post by ferryfast admin on Jul 12, 2011 11:40:49 GMT -5
Austal changing tack because of high $A
12-July-11 by Dan Wilkie
www.wabusinessnews.com.au/en-story/1/90208/Austal-changing-tack-because-of-high-A
www.austal.com/
Austal has provided an update on a review of its Henderson operations first announced in May, saying it needs to regionalise its manufacturing base to remain competitive in the face of the strong-performing Australian dollar.
The shipbuilder said the principle findings of the review backed up its strategy shift announced in May, when it said it would focus on the defence industry at its Henderson shipyard.
In May, Austal said the high Australian dollar and weak European markets slashed its full year profit expectations down to between $20 million and $24 million, after lodging a $14.1 million interim net profit in February.
Austal today said the outlook for commercial and defence vessel service and maintenance was strong, and it would continue to pursue contracts in that space.
Austal also said the review found demand in the international commercial vessel market, such as work boats and ferries, remained strong, and new markets were emerging.
To remain competitive, however, Austal said it had identified the need to regionalise its manufacturing base.
"The review confirmed that Austal's Australian business has considerable engineering and modular manufacturing skills and that coupled with the IP that exists in Henderson, Austal can be Australia's leading defence prime contractor.," Austal chief executive Andrew Bellamy said.
"It is these very skills and IP that has led to Austal being selected as preferred tenderer by the Australian Customs and Border Protection Service for the Cape Class patrol boat project.
"Through regionalising its manufacturing base, Austal will have the ability to compete effectively in commercial markets where we have been excluded by the high Australian dollar.
"Austal has the products and the IP, we just have to get the cost base right."
The shipbuilder also quashed media speculation that it was planning to shift its US shipyard from Alabama to the Philippines.
Austal won a $US1.6 billion, 10-vessel contract with the US Navy in December last year, under which 10 high-speed Littoral Combat Ships will be built at its Mobile, Alabama shipyard.
"Austal has no intention whatsoever to build its LCS of JSV vessels anywhere other than at Austal USA in Mobile, Alabama," the company's statement said.
"Furthermore, the group has not determined a location for its regional manufacturing base and continues to investigate possible opportunities in a number of different countries."
Austal said it would make its decision by December.
At close of trade today Austal's stock had lost 5.3 per cent, to settle at $2.83.
Print
12-July-11 by Dan Wilkie
www.wabusinessnews.com.au/en-story/1/90208/Austal-changing-tack-because-of-high-A
www.austal.com/
Austal has provided an update on a review of its Henderson operations first announced in May, saying it needs to regionalise its manufacturing base to remain competitive in the face of the strong-performing Australian dollar.
The shipbuilder said the principle findings of the review backed up its strategy shift announced in May, when it said it would focus on the defence industry at its Henderson shipyard.
In May, Austal said the high Australian dollar and weak European markets slashed its full year profit expectations down to between $20 million and $24 million, after lodging a $14.1 million interim net profit in February.
Austal today said the outlook for commercial and defence vessel service and maintenance was strong, and it would continue to pursue contracts in that space.
Austal also said the review found demand in the international commercial vessel market, such as work boats and ferries, remained strong, and new markets were emerging.
To remain competitive, however, Austal said it had identified the need to regionalise its manufacturing base.
"The review confirmed that Austal's Australian business has considerable engineering and modular manufacturing skills and that coupled with the IP that exists in Henderson, Austal can be Australia's leading defence prime contractor.," Austal chief executive Andrew Bellamy said.
"It is these very skills and IP that has led to Austal being selected as preferred tenderer by the Australian Customs and Border Protection Service for the Cape Class patrol boat project.
"Through regionalising its manufacturing base, Austal will have the ability to compete effectively in commercial markets where we have been excluded by the high Australian dollar.
"Austal has the products and the IP, we just have to get the cost base right."
The shipbuilder also quashed media speculation that it was planning to shift its US shipyard from Alabama to the Philippines.
Austal won a $US1.6 billion, 10-vessel contract with the US Navy in December last year, under which 10 high-speed Littoral Combat Ships will be built at its Mobile, Alabama shipyard.
"Austal has no intention whatsoever to build its LCS of JSV vessels anywhere other than at Austal USA in Mobile, Alabama," the company's statement said.
"Furthermore, the group has not determined a location for its regional manufacturing base and continues to investigate possible opportunities in a number of different countries."
Austal said it would make its decision by December.
At close of trade today Austal's stock had lost 5.3 per cent, to settle at $2.83.