The move follows a tumultuous time for Boart. When downgrading its full-year guidance from $A2.3 billion to roughly $2 billion in August, its shares tumbled 35% in one day and resulted in the departure of chief executive Craig Kipp in October.
Boart chairman and interim CEO David McLemore said the company had met its initial cost-saving goal, which was announced November 19.
“While we have completed our state cost-saving initiative, we continue to review opportunities to further rationalise our overhead cost structure,” he said.
McLemore said the Salt Lake City-based company had reduced overall global headcount by about 2500 direct and overhead employees since the middle of the year.
The company also responded to a price query from the ASX after its shares jumped from an opening price of $A1.56 to $1.70 yesterday and noted an increase in the volume of trading.
Boart company secretary Paul Blewett said the company was not aware of any information that had not been announced that could explain the trades.
“Please note that the company proposes to make an announcement to the market today confirming that the annualised cost-savings activities outlined in its market update of 19 November 2012 have now occurred,” he said in a statement addressing the ASX query.
“This announcement was not prompted by your letter of 20 December 2012, and the company considers that it is unrelated to your query.”
Boart stocks were up 7c to $1.78 today, marking a near-26% increase since last Friday, when they closed at $1.41.
