Australia's Austal gains on reaching settlement of dispute in US

Austal

27/08/2024 05:19

** Shares of shipbuilder Austal  ASB.AX  advance as much as
5.8% to A$2.380
    ** Stock up 4.4% as of 0417 GMT, set to gain most since
early May
    ** Co says it reached a resolution with the U.S. Department
of Justice and U.S. Securities and Exchange Commission regarding
a previous regulatory investigation
    ** Says investigation based on former Austal USA employees
misstating its financial condition and performance between 2013
and 2016
    ** Under resolution, Austal USA to pay penalty of $24 mln
and engage independent monitor for three years to ensure
compliance with DoJ
    ** Co maintains FY24 underlying EBIT margin outlook of 3%-4%
    ** Stock has risen ~10.8% this year, as of last close

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))