Analyst cuts 2009 profit estimate

Shares of Layne Christensen Co. fell Tuesday as an analyst cut his profit estimates and downgraded the drilling and construction services provider, saying he believes its markets continue to deteriorate.

UBS analyst Steven Fisher downgraded the Mission Woods, Kan.-based company to "Sell" from "Neutral" and cut his fiscal 2010 earnings per share estimate to $1.45 from $1.65.

Analysts surveyed by Thomson Reuters expect earnings per share to be $1.57.

Fisher maintained his price target of $14 per share.

He said he expects state and local budgets will likely restrain water spending, capital spending cuts in mining could hurt Layne's mining revenue and margins and low natural gas prices could pressure Layne's energy business.

And Fisher said revenue from water and mining businesses declined during the recession earlier this decade and that history could repeat itself.

"While we think Layne could be better prepared this time, we assume the current downturn is more severe," he wrote.

Shares fell $1.46, or 7.2 percent, to close at $18.70.