ASC maintains profit

ASC Pty Ltd – the company responsible for maintaining and enhancing Australia’s Collins Class submarines and building the new Hobart Class air warfare destroyers (AWD) - today announced net earnings of $29.7 million – maintaining its profit from last financial year.

ASC Managing Director Greg Tunny attributed the company’s success to continued operational improvements, improved productivity, and an unwavering commitment to both safety and customer outcomes.

“The Collins Class submarines have performed well during the year, and ASC completed all 10 maintenance activities for 2007/08 within the agreed schedule,” Mr Tunny said.

“Importantly, the October 2007 signing of the Air Warfare Destroyer Alliance contract to build the Hobart Class AWDs was a catalyst for ASC to begin the next phase of its transformation and growth.

ASC Chairman John Prescott AC said ASC’s business is robust and continues to deliver tangible returns to the Commonwealth of Australia. The company is well positioned to meet current and future challenges, and ready to return to the private sector.

“It is clear that our long-term strategy to deliver outcomes on schedule and to exacting quality standards is serving the company’s customers and shareholder well,” he said.

“For eight years, ASC has worked tirelessly to overcome various impediments and position itself for long-term growth in preparation for the privatisation of the company.

“ASC has now established itself as the nation’s leading company in the naval shipbuilding and repair industry.“It has been a privilege for me to chair a company that is both a national asset and a great business.”

ASC's 2007/08 Annual Report is available here

ASC 2007/08 FINANCIAL YEAR:  Annual revenue of $325m (2006/07: $312.6m) Profit after tax of $29.7m (2006/07: $29.6m) Fully-franked dividend of $17.9m (2006/07: $17.8m) ASC signs the Alliance Based Target Incentive Agreement (build contract) for the Hobart Class Air Warfare Destroyer (AWD) Program. Opening of ASC West - a $35m purpose-built submarine maintenance and upgrade facility in Henderson, Western Australia. Construction commences on ASC's new $100m air warfare destroyer shipyard at Osborne, South Australia where the three Hobart Class AWDs will be built.

ASC (formerly Australian Submarine Corporation) is the nation’s last remaining Australian-owned prime defence contractor.  The company designed and constructed the Collins Class submarines and today delivers 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 1,400 Australians in South Australia and Western Australia, including 280 engineering and technical specialists.  The Federal government has stated that it plans to return ASC to private ownership.

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For more information:  
Jayne Flaherty, Corporate Communications Manager
ASC Pty Ltd
Telephone: 08 8348 7000
Mobile: 0423 029 307
Email: Jayne.Flaherty@asc.com.au