Did Austal Limited benefit from its innovative production processes?Team Veye | 26 Mar 2020 ASX - ASB
Austal Limited (ASX: ASB)
Austal USA Operations Remain Open
US Navy Shipbuilding Declared A Critical Role in US National Defence
Austal Limited (Austal) (ASX: ASB) advised n 24 March 2020 that the U.S. Navy and U.S. Department of Homeland Security have identified Austal USA and U.S. defence shipbuilding activities as mission essential industries during the COVID-19 pandemic. The U.S. Government is working with Austal USA to ensure all efforts are taken to protect the workforce and continue the production and maintenance of ships.
Assistant Secretary of the United States Navy (Research, Development and Acquisition), James F. Geurts, identified Austal USA as performing a critical role in the national defence of the United States of America, during the COVID-19 pandemic.
(Graphic Source – Company Reports)
Austal Australia Delivers 6th Guardian Class Patrol Boat
Austal Limited (Austal) (ASX: ASB) on 6 March 2020 announced the on-time delivery of the sixth Guardian-class Patrol Boat (GCPB) to the Australian Department of Defence.
Austal Chief Executive David Singleton said the first Guardian-class Patrol Boat delivery for 2020 highlighted the Australian shipyard’s continuing gains in productivity and efficiency, which is delivering a new naval vessel every 3 months. (Data Source – Company Reports)
In the third year of production, Austal’s Pacific Patrol Boat Replacement Project has really hit its stride, with this sixth Guardian-class Patrol Boat benefiting from a number of innovative production processes that have reduced production time, while maintaining quality. Austal USA, as a defence industry contractor, has been considered an essential critical infrastructure employer as defined by the U.S. Department of Homeland Security. The Company’s US operations provide 77 per cent of Austal’s revenue and 89 per cent of its Earnings Before Interest and Tax. The stock underwent some correction right up to its support level. It is now trying to recover as the indicators on the chart have turned positive. Veye maintains a "Hold" on “Austal Limited” at the current price of $2.65
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