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Austal (ASX:ASB) - Outgoing CEO, David Singleton - The Market Herald
Outgoing CEO, David Singleton
Source: The Australian
  • Australian shipbuilder Austal (ASB) has increased its 2020 financial year earnings guidance to $2 billion, compared to a previous $1.9 billion
  • The company also reported a rise in its earnings before interest and taxes (EBIT) of no less than $125 million, compared to a previous expectation of $110 million
  • The extra money is from strong performance across the business and COVID-19 having less of an impact than originally expected
  • After announcing this report, Austal came out of a trading halt and is up 9.24 per cent and is selling shares for $3.31 each

Australian shipbuilder Austal (ASB) has increased its 2020 financial year earnings guidance to $2 billion, compared to a previous $1.9 billion.

The company also reported a rise in its earnings before interest and taxes (EBIT) of no less than $125 million, compared to a previous expectation of $110 million.

The extra money is from strong performance across the business and COVID-19 having less of an impact than expected. Also impacting the funds was winning a new contract to construct a vessel in Australia.

Additionally, the company received research and development incentives in the U.S. after fitting the criteria.

“Austal’s continued strong performance across our shipyards in the USA, Australia, Philippines and Vietnam during the COVID-19 pandemic has provided confidence to increase the company’s FY2020 earnings guidance at this time,” Chief Executive Officer David Singleton said.

The company is still remaining alert to the potential impact of COVID-19.

After announcing this report, Austal came out of a trading halt and is up 9.24 per cent and is selling shares for $3.31 each at 3:25pm AEST.


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