Boart Longyear is the company to call if you need to dig yourself out of a big hole -- literally. The company manufactures drilling machinery and provides services to mining, energy, and infrastructure companies worldwide. Although the majority of Boart Longyear's business is geared toward mining activities, the company also caters to industrial businesses that utilize its hard metal and diamond technologies. The company, which was founded in 1936 to develop new ways to make use of Anglo American's excess boart (lowgrade natural diamond), now operates worldwide.
For Boart Longyear, 2009 presented some challenges. Tight credit markets brought on by the the global financial crisis led to limited access to financing and reduced mineral exploration by major mining and resource companies. As a result, fewer products were sold and fewer companies engaged the services of Boart Longyear's global drilling rig fleet. Revenues were off 47% from 2008 levels and the company posted a $15 million net loss. However, the outlook for 2010 is improved. By late 2009, customer inventories began dropping and rig utilization increased, leading to projections that revenues would recover in 2010.
In 2008 CEO Paul Brunner retired and was replaced by Craig Kipp. Brunner had been with Boart Longyear for more than two decades; Kipp joined the company in 2005 and helped lead Boart Longyear through its public offering two years later. – less