Australian crane rental company Boom Logistics last week said it plans to lay off 130 employees and reduce its fleet by about 40 low-tonnage cranes. The Melbourne-based company said it will not meet its expectations for its 2009 fiscal year.
The company said it experienced a â€śsevere contraction of the industrial services, non-residential construction and capital equipment markets in Australia.â€ť The company lost AU $0.5 million (about U.S. $380,000) in its fiscal third quarter, not including the AU $0.9 million restructuring costs to its Victorian Melbourne Mobile business, $1.3 million in stock write-downs and losses on the sale of second-hand crane assets, and $0.6 million in unrealized foreign exchange gains.
The company said crane rental delivered a better result in the third quarter of FY09 than in the same quarter a year ago, however, overall activity is decreasing with specific industrial services work in Western Australia and New South Wales is expected to drop in the coming months.
â€śIn what is proving to be a very difficult trading environment, Boom will continue to focus on the delivery of safe, effective and value-driven solutions to our customers,â€ť said CEO Brenden Mitchell. â€śThe current environment demands that we focus on cost and debt reduction, whilst continuing to improve our fleet profile for long-term substantial growth.â€ť