Boart cuts revenue guidance and 500 jobs

In a statement, Boart said it had revised down its forecast revenue growth from its previous guidance of 22% in light of the weaker Australian and Canadian dollars as well as lower revenues from the company’s products division.The news comes after the company reduced its revenue growth guidance in October to 22% from 25% growth given in late August.Boart Longyear president and chief operating officer Craig Kipp said while the financial performance of the company’s drilling services business continued to be solid, the company had experienced a decline in orders for manufacturing products, particularly in its capital equipment product line, which was reducing Boart’s revenues.“To date, workforce reductions in drilling services and products have resulted in the elimination of over 500 positions,” he said.“Additional actions are expected to be announced by the end of year, including further rationalisation of the company’s manufacturing capacity as well as significant re-alignment of business support and administrative functions. “Restructuring charges associated with these actions are expected to be $US10-20 million in 2008.” Kipp said Boart’s focus in 2009 would continue to be managing liquidity and re-positioning its balance sheet through debt reduction. “Total liquidity, including availability under our revolving credit facility and cash balances, is expected to be approximately $85 million at year-end, which is more than adequate for the company’s anticipated needs in the future.”The company is also looking to reduce its outstanding net debt by up to $150 million in 2009, depending on market conditions. Boart Longyear provides drilling products and services to the mining and construction industries, and employs approximately 10,000 people worldwide.

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