News: Strong dollar cuts Austal profit forecast

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Austal Ltd (ASX:ASB) has cut its full year profit forecast as a result of the Australian dollar adversely impacting the shipbuilders translation of earnings from its international operations.

The company now expects to deliver a net profit of between $20 and $23 million in the 12 months to 30 June 2011.

In the 2010 financial year Austal achieved a net profit of $37.1 million.

CEO Andrew Bellamy says the forecast strength of the local currency in the foreseeable future requires Austal to reposition its Australian business to respond to the challenge.

Mr Bellamy says Austal will continue to seek commercial vessel opportunities but it is logical to leverage off those credentials and refocus its Henderson operations towards defence.

Austal has commenced a review of its Henderson operations with the aim of refocusing the yard’s capabilities towards the manufacture and support of defence vessels.

In the first half of its 2011 financial year, Austal reported a net profit of $14 million for the six months to 31 December 2010.