Ausdrill warns on soft market
The company suspended trading in its shares on Tuesday as it warned of "ongoing challenging market conditions, which are weaker than expected".
Accordingly, the company intends to provide the market with a trading update on Wednesday.
It joins others in the sector such as Boart Longyear and Imdex which warned of a prolonged and severe downturn and resulted in the share prices of both companies falling sharply. Ausdrill's share price has fared better, until now at least, thanks to less bearish statements by management on its prospects.
When releasing its year-to-June results, for example, Ausdrill pointed to the softer spending by smaller resources companies, while highlighting its long-term contracts with a number of clients along with a series of measures aimed at consolidating cash and reducing costs.
In the year to June, Ausdrill's net profit declined just 7 per cent to $100 million with revenues buoyed largely by the acquisition of the Best Tractor Parts business in November 2012.
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Ausdrill suspended trading in its shares due to ongoing challenging market conditions that were weaker than expected, prompting the company to prepare a trading update.
Ausdrill suspended trading in its shares due to ongoing challenging market conditions that were weaker than expected, prompting the company to prepare for a downgrade in earnings expectations.
The slump in resource sector spending has led Ausdrill to downgrade its earnings expectations for the upcoming year, as the market conditions have been more challenging than anticipated.
The slump in resource sector spending has led Ausdrill to warn of weaker market conditions, resulting in the company preparing to downgrade its earnings expectations for the upcoming year.
While Ausdrill's share price has fared better than some of its peers like Boart Longyear and Imdex, it is now facing pressure due to the challenging market conditions.
While Ausdrill's share price has fared better than some of its peers like Boart Longyear and Imdex, which experienced sharp declines, it is now facing pressure due to the challenging market conditions.
Ausdrill has highlighted its long-term contracts with clients and implemented measures to consolidate cash and reduce costs in response to softer spending by smaller resources companies.
Ausdrill has highlighted its long-term contracts with clients and implemented measures to consolidate cash and reduce costs in response to softer spending by smaller resources companies.
In the year to June, Ausdrill's net profit declined by 7% to $100 million, with revenues supported by the acquisition of the Best Tractor Parts business.
In the year to June, Ausdrill's net profit declined by 7% to $100 million, with revenues supported by the acquisition of the Best Tractor Parts business in November 2012.
Companies like Boart Longyear and Imdex are also facing a prolonged and severe downturn in the resource sector, which has negatively impacted their share prices.
Boart Longyear and Imdex have warned of a prolonged and severe downturn, which has resulted in their share prices falling sharply.
A significant factor in Ausdrill's revenue during the past year was the acquisition of the Best Tractor Parts business in November 2012.
Ausdrill's strategy includes leveraging long-term contracts with clients and implementing cost-reduction measures to maintain stability during market downturns.
Ausdrill's strategy includes focusing on long-term contracts with clients and implementing cost-reduction measures to navigate the downturn in the resource sector.
Ausdrill intends to provide the market with a trading update on Wednesday following the suspension of trading in its shares.
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