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Australia’s ASC Records Largest Profit In 14 Years

ASC, Australia’s only submarine designer/builder/maintainer and also shipbuilder for the Air Warfare Destroyer Program, today announced net earnings of $29.6 million – the company’s biggest profit in 14 years.

ASC Managing Director Greg Tunny attributed the 60% increase in profit to unprecedented levels of efficiency and effectiveness in the company’s maintenance of the Collins Class submarines.

“We achieved 20% growth in revenue to $312.4 million, primarily as a result of obtaining record incentive payments under the submarine Through-Life Support contract,” Mr Tunny said.

“At the same time, our contribution to the Air Warfare Destroyer (AWD) Program placed the project in a strong position heading into its construction phase.

“While we attribute much of ASC’s business success to our determination to increase our operating efficiency, our ongoing partnership and shared objectives with our customer has had a significant impact on our performance.

“We are fortunate to benefit from an open and transparent relationship with both Defence Materiel Organisation and the Royal Australian Navy; a relationship that demonstrably serves both customer and contractor well,” Mr Tunny said.

ASC Chairman John Prescott AC said 2006/07 marks ASC’s ‘coming of age’ as Australia’s leading naval defence contractor for both submarines and ships.

He praised the ongoing loyalty of the company’s 1,000+ staff and reaffirmed the Board’s commitment to support the Commonwealth’s intention to return the company to private ownership.

-- Annual revenue of $312.4m, 20% increase on 2005/06 ($260.9m).
-- Profit after tax of $29.6m, 60% increase on 2005/06 ($18.5m).
-- Fully-franked dividend of $17.8m, 60% increase on 2005/06 ($11.1m).

-- Completion of HMAS Waller’s full-cycle docking, including first-time implementation of the replacement combat system and heavyweight torpedo capability upgrades.
-- Commencement of construction of a $35-million submarine maintenance and upgrade facility in Western Australia.

ASC (formerly Australian Submarine Corporation) is Australia’s exclusive submarine designer, builder and maintainer, as well as the shipbuilder for Australia’s Air Warfare Destroyer Program. ASC constructed the Collins Class submarines and today deliver design, upgrade and maintenance services for the submarines’ through-life. In May 2005, ASC was selected to build Australia’s next generation warships – the Hobart Class air warfare destroyers. ASC employs over 1,100 Australians in South Australia and Western Australia, including 280 engineering and technical specialists.

The current government has stated that it plans to return ASC to private ownership in 2008.

ASC Records Largest Profit In 14 Years