Mining market difficulties hit Boart Longyear

24 February 2014

Drilling equipment and drilling services company Boart Longyear saw its revenues fall -39% last year to US$ 1.22 billion. The company recorded a net loss of US$ 620 million – a margin of more than -50% - with restructuring and impairment charges of US$ 461 million.

Despite the difficult results, the company accentuated the positives in its financial statement. “In spite of 2013 being an extremely challenging year for the global mining industry and the company’s core markets, the company generated US$ 107 million of adjusted [earnings before interest tax depreciation and amortisation] EBITDA and held net debt relatively flat.” It added that US$ 4212 million of its US$ 461 million accounting charges last year were non-cash.

The company’s products division, which makes drilling equipment and consumables for the construction and mining industries, saw revenues fall -38% last year to US$ 306 million. “Revenue and EBITDA for the Products division declined through the year until stabilising in the second half of 2013 (apart for the typical seasonal decline the business experiences around the holiday period),” said a company statement.

“The Products division’s results were impacted by low rig utilisation rates among its customers, who continued to de-stock throughout the year and appear likely in 2014 to hold only minimal levels of inventory necessary to support their on-going operations,” it added.

The company has not provided a market outlook for its revenues and profits this year, citing market uncertainty.

Latest News
CSCEC-built spiral tunnel officially recognised as world’s longest
A spiral tunnel in China, built by Chinese construction giant China State Construction (CSCEC), has been recognised as the world’s longest
Consortium wins €302m deal to build Swiss railway plant
A consortium led by Swiss construction company CSC Costruzioni has won a contract worth €302 million (US$327 million) to build a new railway plant in Switzerland
Epiroc to acquire French attachments manufacturer
Swedish OEM continues massive attachments expansion following Stanley acquisition