Archer Limited : Trading update

Thu, Jun 11, 2015 08:28 CET Report this content

Hamilton, Bermuda (June 11, 2015) 

Although we continue to make good progress on our cost reduction initiatives which has limited the impact of adverse trading conditions on the Group, we now expect a lower than anticipated financial performance in the second quarter 2015 as compared with guidance provided at the end of the first quarter 2015. 

This is predominately the result of a higher than anticipated decline in revenue in North America, currently estimated to be approximately 35% below the first quarter, as well as higher costs incurred in our Latin America operation, where we expect operating costs to be approximately $10 million above the first quarter, resulting in part from several one-time severance, repair and other start-up expenses.

David King, Chief Executive Officer, stated, "The current market environment is very challenging and has limited near-term visibility.  The additional reductions in our revenue are a reflection of the continued pressure our industry is facing. We are doing all we can to minimize the financial effects and I believe that as a result of our cost management efforts as well as the investments made we will see improvements during the second half of 2015 compared to the second quarter 2015."

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