Austal defends half-year accounts, confirms U.S. defence relief in guidance

Austal ( (AU:ASB) ) just unveiled an announcement.

Austal has responded to an inquiry from the Australian Securities Exchange regarding its reviewed half-year financial report, confirming that its directors believe the accounts comply with accounting standards and give a true and fair view of the group’s financial position and performance. The company also clarified that its updated earnings guidance includes an amount for contractual relief it is seeking from the U.S. Department of Defense, which remains under confidential negotiations.

Management said the accounting treatment of this variable consideration is supported by the seniority of U.S. defence counterparts, the customary nature of such relief in the sector, and Austal’s and peers’ prior experience in obtaining similar relief. Austal is working to resolve the matter or provide additional evidence to its auditor, Deloitte, in order to remove the current qualification on its review opinion in future statements and maintains that its risk management and internal controls remain sound and effective.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$5.50 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

More about Austal

Austal is an Australia-headquartered shipbuilding and defence contractor, operating through subsidiaries such as Austal USA to design and construct vessels and related systems for the U.S. Department of Defense and other defence customers. The company’s performance is closely tied to U.S. defence contracts and associated commercial terms, including potential contractual relief on major programs.

Average Trading Volume: 1,766,611

Technical Sentiment Signal: Buy

Current Market Cap: A$2B

For a thorough assessment of ASB stock, go to TipRanks’ Stock Analysis page.