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Boart Longyear expects profit to fall more than 15%
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Boart Longyear expects profit to fall more than 15%
 10:04 AM




By a staff reporter

Drilling services provider Boart Longyear Ltd expects full year operating profit to fall more than 15 per cent, as revenues plunge as much as 40 per cent.

The company reiterated guidance that total revenues for 2009 would likely decline 35 - 40 per cent, while its EBITDA (earnings before interest, tax, depreciation and amortisation) margin percentage, before restructuring charges, is expected to be in the range of 11 - 13 per cent.

"The guidance given therefore indicates that there will be a change in the operating profit before abnormal items and income tax for the financial period ended 30 June 2009 that will vary from the previous corresponding period by more than 15 per cent," Boart said in a statement on Thursday, in response to a price query by the Australian Securities Exchange (ASX).

The company also expects to record $10 million in restructuring charges in the first half, relating to "ongoing cost saving initiatives".

Boart said it was not aware of any new information that could explain why its share price jumped to a high of 23 cents from a low of 14.5 cents on Wednesday.