Storms hit Boom profits

Australian crane rental company Boom Logistics has revised its profit expectation downwards by 11%. The move follows flooding and high winds along the country's east coast where the company does much of its work.

The company now forecasts net operating profit after tax of between AU$36 million (US$31.5 million) and AU$37 million ($32.4 million) for the year ending 30 June 2007. This is down from about $41 million forecast earlier in the year, according to Australian Associated Press.

The downturn was caused by extreme weather over the last five months, said the company, causing unplanned outages which delayed the expected resumption of planned maintenance by many of its customers. The business was also hampered by delays in the delivery of new equipment due to worldwide supply shortages.

Mark Lawrence, Boom Logistics CEO, said he was disappointed by the impact of the abnormal weather conditions on the company's result but remained “confident about the outlook for the business and strength of the underlying customer demand profile.”