Rusty Murdaugh resigns as Austal USA president

Rusty Murdaugh [Photo: Austal USA]

Austal USA says that Rusty Murdaugh has resigned as its president, effective today.

Murdaugh was named president in Sept. 2021 (after being named acting president in February 2021 when former president Craig Perciavalle resigned).

In today’s announcement, Austal USA says that Murdaugh led the company “through significant changes that ushered in a period of unprecedented growth. Under his leadership, Austal USA completed the addition of steel shipbuilding capability to the Mobile shipyard, opening the most modern steel shipbuilding facility in the industry. This change led to major competitive awards in the U.S. Coast Guard Heritage-class Offshore Patrol Cutter (OPC) program and U.S. Navy ocean surveillance ship (TAGOS-25) program creating over $6 billion in new construction backlog. During his tenure, Austal USA also opened a waterfront ship repair facility in San Diego, greatly expanding the company’s repair business, and acquired property in Mobile that will facilitate the continued expansion of the Mobile shipyard.”

“Rusty made a lasting impact on the company,” said Paddy Gregg, CEO of Austal USA’s parent Austal Limited (ASX:ASB). “The transformation and growth of Austal USA under his leadership has postured the company for the future with a diversified and balanced portfolio. Rusty is leaving Austal USA with unlimited growth potential and we thank him for all his hard work and dedication over the last two years.”

T-ATS PROGRAM WOES

All that said, Murdaugh’s departure comes within a month of Austal Limited revealing in a filing that, after reviewing forecasts for the T-ATS towing and rescue ship program at Austal USA it was making a “substantial revision” in its earnings guidance for FY2023.

Its EBIT guidance for FY2023 was reduced from earnings of approximately AUD 58 million (about US $39 million) to an expected range of between zero profit and a potential loss of AUD 10 million (about US $6.7 million).

Austal Limited is set to release its FY 2023 results tomorrow and will hold an investor and analyst call at 7.30 a.m AWST.

Meantime, Michelle Kruger, Austal USA’s vice president of global services and support, has been named acting president of the company until a successor to Murdaugh is named.