Due to flooding in Queensland, Boom Logistics Limited (BOL) evacuated the following sites in Brisbane yesterday to ensure the safety of its employees allowing them to travel home safely and to secure their family homes: Boom Cranes Brisbane – Pinkenba site; and Boom Sherrin Brisbane – Eagle Farm site. These sites will remain closed today.
Due to the location of Boom’s premises, and based on current weather guidance, it is not anticipated that equipment located on Boom’s premises will be impacted, but Management will continue to monitor this position closely.
Whilst the mines that Boom supports in the Bowen Basin continue to operate, the limitations caused by the weather, including road permit restrictions for our vehicles and those of our customers, mean that our operations are running at 50% of normal capacity. Based on interaction with our customers, we expect activity in the Bowen Basin to remain subdued throughout January.
A Boom Sherrin depot is located in Toowoomba and whilst this location is secure, the depot is closed while our people support the recovery effort in the region.
Management estimates that the severe Queensland weather in December 2010 has impacted the December result by approximately $1.2 million EBIT across Brisbane and the Bowen Basin in the crane business and the Boom Sherrin operations throughout Queensland.
Whilst the weather was also poor in New South Wales, the financial impacts were not significant due to the location of Boom’s operations.
Given that the weather conditions in Queensland are forecast to continue, Boom is unable to provide an estimate of the likely financial impacts of these current conditions at this time.
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