Boart Longyear reports a loss, axes thousands more jobs
Boart Longyear (ASX: BLY), the world’s largest provider of drilling services for the mining industry, logged Monday a substantial loss and said it is cutting thousands more jobs as it experiences the worst industry conditions since the global financial crisis.
The Utah-based company said it made a net loss of US$329.4 million in the six months through to June, compared with $97.7 million in profit a year earlier. The company added it wouldn’t be able to pay an interim dividend to shareholders.
Boart blamed the sharp slowdown in demand from China for the loss, as its key mining customers have cut capital expenditure, including drilling services.
“Operating conditions and key performance indicators have continued to deteriorate early in the second half of the year, and are similar to levels experienced during the previous market downturn in 2009,” said the firm in a statement.
Boart Longyear has axed over 2,800 jobs so far this year and it has also sold its non-core environmental and infrastructure drilling services operations.
Equipment image courtesy of Boart Longyear
{{ commodity.name }}
{{ post.title }}
{{ post.date }}
3 Comments
Tony
Question is, will a change in government in Australia with the abolishment of carbon and mining taxes and the increase of commodity prices be enough to increase work and reduce job cuts?? or are mining giants using this to cull employees and gain a bigger profit margin (given that they are still operational under lower employment rates)?
Joel Calixto
L
amentável a situação, é uma grande empresa e detém uma vasta tecnologia e conhecimento em perfuração de solos.
just_a_thought10
will it ever go back up? will those jobs cut ever come back!! so sad so many peoples lives have changed dramatically since this. just wish my husband could get his job back :'(