US-based Boart, which has shed 1000 employees since January, blamed the downward trend in commodity prices and a reduction in exploration expenditure.
In April, analysts’ forecasts ranged from $US1.46 million ($A1.48 million) to $1.72 million for revenue and $199 million to $271 million for earnings before interest, taxes, depreciation, and amortisation (EBITDA).
But Boart said that, based on industry conditions, the company expected 2013 revenue and EBITDA would be at the lower end of the forecasts.
Boart’s advised its annual general meeting that net debt levels at year-end 2013 were expected to decline to $400 million to $500 million, based on reduced capital expenditures and earnings of the business.
President and chief executive officer Richard O’Brien said the company was focusing on controlling total costs.
“In addition to the cost actions the company took in 2012, over 1000 employees have left the business since the start of the calendar year, with the head count now below 8000,” he said.
“The downturn in capital and exploration spending in the mining sector globally has clearly reduced demand for drilling services and products.
“We have a number of further initiatives underway to reduce net debt over the course of the calendar year and beyond, including reduced inventory levels and adhering to a reduced capital investment budget.”
Meanwhile, Transfield Services said it expected net profit after tax, but before amortisation and impairments for FY13 would be between $A62 million to $65 million, compared with existing guidance of between $85 million to $90 million.
The company brought forward cost savings of $26.1 million to offset market conditions and confirmed a further 113 job losses.
Transfield blamed ongoing uncertainty in the commodity markets, resulting in the delay and deferment of a range of resources and infrastructure projects and the cancellation of works across the operations and maintenance sector.
“Most of this variance in net profit after tax has been caused by the slowing external market factors. As a direct response to these circumstances, additional incremental restructuring costs of $5.9million will be incurred in FY13 in order to reduce the future cost base,” the company said in a statement.
Transfield shares fell 22.3% to 99c, while Boart’s share price fell to 74c before regaining ground to 78.5c.
