Boart axes 1000 jobs as downturn hits Drilling services provider Boart Longyear has become the latest mining contractor to deliver a grim profit update, warning the slowdown in the resources sector has led to a significant drop in demand for its business and forced it to cut more than 1000 jobs worldwide since the start of the year. Chief executive Richard O'Brien told shareholders at the company's annual meeting in Melbourne that utilisation rates for its drilling rigs could fall as much as 20 per cent compared to last year. Boart provided earnings guidance at the lower end of analyst forecasts, which have already been slashed repeatedly as the deterioration in the contract mining sector has accelerated. "The downturn in capital and exploration spending in the mining sector globally has clearly reduced the demand for drilling services and products," he said. The Utah-based, Australian-listed driller said revenue would come in at the lower end of analysts' forecast range of between $US1.466 billion and $US1.726 billion. Earnings before interest tax, depreciation and amortisation would likely come in at the lower end of between $US199 million and $US271 million, it said. Both would be down dramatically compared to the $US2.01 billion in revenue and adjusted earnings of $US322 million reported last year. Drillers are typically the first among the mining contractors to feel the pain of a downturn in mining spend from the big miners, as evidenced by the steep crash in the share prices of Boart and its peers during the financial crisis. Boart shares actually rebounded as much as 6 per cent on Tuesday afternoon to 83.5 cents in early reaction to its market update, possibly indicating investors were relieved the figures were not worse. Shares in Boart have fallen about 70 per cent since February, with the market largely anticipating a steep downturn in the fortunes of mining contractors. Mr O'Brien said that while broader market conditions were out of the company's control, Boart was focused on cutting costs within its control. He said the company had slashed its global workforce by more than 1000 since the start of the year, taking the job cuts in the past year to more than 3000. Boart's workforce now sits at 8000.