September 8, 2009 / 9:34 PM / in 8 years

UPDATE 1-Canada's Major Drilling Group posts Q1 loss

* Q1 loss/shr C$0.14 vs EPS 1.11 year ago

* Revenue down 65 pct to C$62.5 mln

Sept 8 (Reuters) - Canada’s Major Drilling Group International Inc (MDI.TO) on Tuesday reported a quarterly loss, hurt by a stronger Canadian dollar and project cancellations.

For the first quarter ended July 31, the company posted loss of C$3.3 million, or 14 Canadian cents a share, compared with a profit of C$26.3 million, or C$1.11 a share, a year ago.

Revenue dropped 65 percent to C$62.5 million, as companies cancelled or delayed their drilling programs, while decreased pricing also impacted Major Drilling’s margins.

Cash flow from operations, before changes in working capital, was C$7.6 million, down from C$36.5 million a year ago.

Two analysts on average expected earnings of 10 Canadian cents per share on revenue of C$71.32 million, according to Reuters Estimates.

The world’s no. 2 mine drilling company said severe weather impacted its revenue in Australia while Mongolian revenue continued to be down as the mining industry awaited the final passage of that country’s mining laws.

Shares of the company closed at C$22.56 Tuesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Unnikrishnan Nair)

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