Boart Longyear increases FY earnings forecast
By Helen Wright20 December 2010
Boart Longyear has raised its full-year earnings guidance on the back of improved business conditions and more robust drilling activity in December.
The drilling equipment manufacturer and mineral exploration company said it expected full-year earnings before tax, depreciation and amortisation to be US$ 220 million, up from a previous forecast of US$ 205 million.
It also forecast 2010's revenue to be approximately US$ 1.45 billion. Last year's sales totalled US$ 978 million.
CEO Craig Kipp said, "As we proceed towards year-end, we continue to see positive pricing momentum, increasing backlog for manufactured products and growing inquiries for rig availability. Furthermore, recent comments about increased 2011 capital spending by many of the global resource companies reinforce these favourable trends".
The company said operating trends have improved throughout 2010, with modest improvements in pricing as well as strong demand for new product launches.
And to support future growth, Boart Longyear has established a US$ 85 million supplemental credit facility. Currently undrawn, the company said this credit line would provide access to additional liquidity through to February 2012.