Boart CEO quits after share slump

CRAIG Kipp has quit as chief executive of the world’s largest drilling company, Boart Longyear, just weeks after downgrading its 2012 guidance.
Boart CEO quits after share slump Boart CEO quits after share slump Boart CEO quits after share slump Boart CEO quits after share slump Boart CEO quits after share slump

Craig Kipp, courtesy Boart Longyear

Kristie Batten

Kipp will leave immediately, with chairman David McLemore to serve as executive chairman and CEO in the interim.

The Salt Lake City-based company said it would search for Kipp’s replacement internally and externally.

The departure comes just over a month after the company downgraded its full-year guidance due to the current market volatility.

“We are seeing a mining industry in a state of flux,” he said on August 30.

“Global uncertainties like the European debt, decreasing growth in China, restrictive financing conditions and the upcoming US elections are driving our mining customers to be more cautious with their capital and direct it to their higher quality assets.”

The revised full-year guidance was for forecast revenue of about $A2 billion, down from $2.3 billion, with earnings before interest, tax, depreciation and amortisation of $360-390 million, down from $460 million.

The company’s shares fell 35% that day, with the guidance news overshadowing record first-half results.

Boart’s share price has performed poorly this year, trading at over $4.40 in March before slumping to $1.09 last month, a 75% drop.

Its shares traded at over $20 in 2007, prior to the global financial crisis.

Since that low a month ago, Boart shares have partially recovered and closed nearly 1% higher to $1.67 today.

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