Ann: Earnings Guidance Update, page-2

No biggie in the grand scheme of things.

Austal Limited (ASX:ASB) advises that it expects the Company’s Earnings Before Interest and Tax (EBIT) for FY2021 will now be in the range of $112 million to $118 million, with reduced revenue of approximately $1.55 billion.

The change from the previously issued guidance of $125 million EBIT and revenue of approximately $1.65 billion for FY2021 is due to delays experienced on programs and associated costs caused by Covid-19 related border closures, travel restrictions and resourcing challenges that are impacting Austal’s shipbuilding operations in Australia and the Philippines, as well as the requirement to provision for expected future expenses associated with civil penalty proceedings commenced by ASIC in the Federal Court of Australia.

Since the release of the FY2021 H1 results, the Company has been awarded a US$235 million (approximately A$295 million) undefinitised contract by the United States Navy for the detailed design and construction of the 15th Expeditionary Fast Transport (EPF) vessel (see ASX announcement dated 1 March 2021). Austal was also recently awarded a US$44 million contract modification for the design, procurement, production implementation and demonstration of autonomous capability on EPF 13, the future USNS Apalachicola (see ASX announcement dated 9 June 2021).