Boom Logistics says it will further reduce employee numbers across all business units and sell 40 cranes as it revises down its full year net profit forecast from $29 million to $14 million.
In a statement, the company said it is continuing its planned restructure with some activities undertaken in Kalgoorlie, Boom Sherrin in Victoria and its Melbourne mobile crane business.
It said it will reduce employee numbers by a further 130 with redundancy payments to cost around $2.6 million. Boom said the redundancies will achieve an ongoing annual benefit of just over $10 million.
Earlier this year, the company reduced its staff numbers in Melbourne by 31.
Boom today said it will also reduce its fleet by 40 low tonnage cranes, which is likely to yield some asset write downs in the current environment.
The company has also frozen all executive and management salaries.
Meantime, Boom has forecast an operating net profit after tax of between $10 million and $14 million.
Earlier this year, the company had forecast an operating result of between $22 million and $29 million.
The lower profit guidance is due to impacts on all its business units with particular attention paid to Boom's crane hire business in Western Australia.
It said the business delivered a better result in the March quarter than in the previous corresponding period.
"However, overall activity is decreasing with specific industrial services work in Western Australia and NSW expected to reduce in coming months," Boom said.
It added that the crane business in WA had been impacted by project delays which have increased the competitive environment and continuing accommodation cost issues in the North West.
The earnings revision follows a loss-making third quarter where the company reported a $2.1 million net loss including one-off items such as the write downs and restructure costs.
