Layne Christensen posts 2nd quarter net loss

Layne Christensen posts 2nd quarter net loss on flat revenue, missing expectations

Associated Press

MISSION WOODS, Kan. (AP) -- Drilling and construction services provider Layne Christensen posted a net loss in its fiscal second quarter, dragged down by a loss related to an investment and the probable sale of its energy unit.

Its revenues were flat and the quarterly performance missed Wall Street's expectations. The company's shares declined to their lowest point in more than three years.

For the three months ended July 31, Layne Christensen Co. lost $24 million, or $1.23 per share. That compares with a profit of $10.6 million, or 54 cents per share, a year earlier.

Loss from continuing operations was 15 cents per share.

Taking out a $7.7 million loss on the remeasurement of an equity investment, the company's income from continuing operations was 25 cents per share.

Analysts expected earnings of 43 cents per share, according to a FactSet poll.

The Mission Woods, Kan. company's stock dropped 69 cents, or 4 percent, to $18.31 in afternoon trading. Earlier in the session the shares fell to $17.46, a level last touched in February 2009.

Layne Christensen's energy division, which it is looking to sell, was reclassified as discontinued operations during the quarter. That resulted in a loss from discontinued operations of $21.1 million, or $1.08 per share.

Revenue edged up less than 1 percent to $289.6 million from $289.3 million. Wall Street forecast revenue of $292.7 million.

Revenue for the heavy civil division fell 17 percent due to lower activity levels, cost overruns and some execution issues.

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