UPDATE 1-Major Drilling profit falls as mining projects shelved

Mon Nov 26, 2012 5:20pm EST
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* Fiscal Q2 profit C$0.28 v Street view C$0.33

* Revenue down 7 percent at C$199.6 million

* Project cancellations, delays weigh

* Company sees seasonal loss in slow fiscal Q3

Nov 26 (Reuters) - Major Drilling Group International Inc reported a 29 percent drop in quarterly profit on Monday as many mining companies did not extend drilling programs beyond their original budgets and as more projects were delayed or canceled.

The mine drilling company also warned it expects to post a seasonal loss in its fiscal third quarter, which extends into January 2013, as drilling activity slows for the holiday season.

"Holiday breaks are expected to be longer this year and November will not have the benefit of the program extensions that we had last year," said Chief Executive Francis McGuire in a statement.

"As we have experienced in some past years, we expect to generate a seasonal loss in the upcoming (fiscal) third quarter before recovering to Q2 activity levels in the fourth quarter."

Net earnings in the quarter ended Oct. 31 were C$22.3 million, or 28 Canadian cents a share. That compared with C$31.6 million, or 43 Canadian cents a share, in the year-earlier period at the mine drilling company.   Continued...