Shipbuilder Austal has posted a 41 per cent fall in annual profit, and says adverse market conditions which affected its result will be "the norm for some years to come".
Austal, currently engaged in building 20 ships for the US Navy, said net profit for 2010/11 was $21.89 million, down 41.05 per cent from the prior year.
Revenue was 3.4 per cent lower at $503.856 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were $37.568 million, down 44 per cent, and operating profit slumped 61 per cent to $19.792 million.
Austal declared a final dividend of six cents, fully franked.
Austal said the high Australian dollar and "adverse international market conditions, particularly in the important European market", continued to impede its ability to export its products in 2010/11.
"We are confident, however, that Austal's underlying business strategy and the heavy emphasis on defence will continue to deliver growth and long term financial stability," the company said on Friday.
Austal already has signalled a pullback from the European ferry market, which had become unrewarding for the company.
At the same time, Austal is building vessels under two programs for the US military - 10 littoral combat ships (LCS) and 10 high speed vessels (JHSV) under a joint program.
Austal said it was expanding its shipbuilding plant in Alabama, and by 2013 it expected to be employing 4,000 people there.
"There is continuing strong demand in specific segments of the international commercial vessel market (such as fast crew transfer boats, work boats and 30 metre to 50 metre ferries) and new markets (such as offshore turbine wind farms) are emerging for which new products can be developed using Austal's considerable intellectual property," the company said.
"To be successful in these markets, apart from applying its market leading intellectual property, Austal will need to regionalise its manufacturing base to enhance competitiveness."
Austal said current difficult market conditions would continue.
"Sustained adverse international market conditions have had a significant impact on the result for this year.
"Austal believes that the current market conditions - a high Australian dollar, weak European and US economies and increasing competition for labour in Australia - will be the norm for some years to come."
Austal said revenue from its Australian operations fell by $75.447 million from 2009/10 due to the continued impact of global economic conditions, resulting in less work volume awarded and completed in 2011.
"Further contributing to this result was that the stock vessels were not sold during the year as previously expected. The EBIT contribution from the Australian operations decreased, from $27.601 million in 2010, to a negative EBIT of $8.573 million in 2011."
Austal said it had an order backlog on its books worth $1.49 billion.
