Austal's big splash By NICK BUTTERLY October 06, 2002SHIPBUILDER...

Austal's big splash
By NICK BUTTERLY
October 06, 2002

SHIPBUILDER Austal Ltd is looking to the US to drive future growth.

The Henderson-based group is riding high on the recent sale of a third vessel to the New York market, a 43m passenger catamaran worth $12 million to New York operator, Circle Line-Statue of Liberty Ferry Inc.

The catamaran was built by subsidiary Austal USA, headquartered in Mobile, Alabama.

Austal managing director Bob McKinnon said while American operations presently only accounted for some 10 per cent of total revenue, he expected Austal USA to grow substantially in coming years on the back of contracts for the US military.

"We have some confidence that in three to four years our USA operations will equal Austal in Australia," Mr McKinnon said.

Austal received rave reviews from US marines for a 101m high-speed catamaran it delivered in July last year. The cat is capable of sustaining speeds of 36 knots while fully loaded and can deploy a complete battalion of 970 marines as well as 550 tonnes of vehicles and equipment.

With Austal's major rival, Tasmanian-based Incat, in receivership some analysts believe the company is now frontrunner to become the major supplier of transport catamarans to the US military.

Austal has also been short-listed for a $450-million contract to supply the Royal Australian Navy's new line of patrol boats, to replace the ageing Fremantle- class boat.

Mr McKinnon said the company was also keen to expand its luxury boat market share.

Austal produces luxury craft through subsidiary Oceanfast and is building golfer Greg Norman's $70-million yacht, Aussie Rules.

The 69m Aussie Rules has a top speed of 17 knots, a range of 8000 nautical miles and can accommodate 12 guests plus 14 crew.

As part of the deal to build the boat, Norman has agreed to promote a similar line of vessels, dubbed the Norman Expedition Series, around the world.

Oceanfast has five vessels under various stages of construction, representing only 4 per cent of the world luxury vessel market.

Austal, which listed on the Australian Stock Exchange at the end of 1998 at $1, is trading around $1.40.

It reported a 110 per cent increase in earnings to $30.4 million for the 2002 financial year.

Sunday Times (WA)