Austal Limited reports 21.6 million dollar profit for half year

This is compared with the $3.0 million reported for the corresponding period last year.

Executive Chairman, John Rothwell commented, "The pleasing result is due to high levels of production activity and completion of the 10 vessel Yemen contract. While we are forecasting a sound second half, it is not expected to be as strong as the first."

The Group operating profit included a write-back of the provision in the Austal Group Management Share Plan loans of $1.3 million and R&D tax allowances of $4.8 million.

The highlights of the first half have included:
• Launch of the 127 metre trimaran for Fred Olsen to be operated in the Canary Islands. Speed and passenger comfort levels have met expectations. This is the first vessel of this type and delivery of the vessel has been delayed to improve steering in heavy weather. Delivery is expected in March 2005.
• Improved status as a recognized manufacturer of defence vessels with the delivery of the ten 37.5 metre boats to the Yemen Defence Ministry. This was followed in January 2005 by the on-time launch of the first of twelve 57 metre patrol boats for the Royal Australian Navy.
• The core commercial business remains sound with the signing of a 67 metre vehicle-passenger ferry for Malta and two 45 metre passenger ferries for Guadeloupe.

As at 31 December 2004, contracted commercial and defence orders provided still to be recognized revenue of $386 million through to 2007. This order book excludes the two 105 metre catamarans for Hawaii Superferry, two additional Armidale class patrol vessels announced by the Prime Minister and the two initial Littoral Combat Ships which are the subject of options. These orders would collectively add over $500 million to the order book.

During this reporting period Chris Norman has taken over as Chairman of the Audit Committee replacing John Poynton who retired from the Committee.

Effective from today, Austal Limited has also initiated an American Depositary Receipt Program to take advantage of US investor interest in Austal's expansion activities in the USA.