Layne Christensen posts sharp drop in 1Q profit

Drilling and construction services provider Layne Christensen Co. on Tuesday reported its fiscal first-quarter profit plunged by more than 90 percent due to falling demand in key markets.

Net income attributable to the Mission Woods, Kan.-based company was $996,000, or 5 cents per share, down from $10.6 million, or 55 cents per share, in the same period last year.

Revenue for the quarter ended April 30 was $204.2 million, down 17 percent from $244.5 million in the year-ago period.

Analysts surveyed by Thomson Reuters expected earnings of 16 cents per share on revenue of $215.9 million.

Andrew B. Schmitt, president and chief executive, said the quarter was the first to reflect the downturn in the commodities market and weak demand for mineral exploration drilling.

Low natural gas prices affected the company's energy business by reducing revenue and leading to greater depletion of the company's reserves.

In addition, Schmitt said earnings declined in the company's water business due to reduced demand for new water supply.

"This combination of factors produced a very weak quarter," he said in a statement.

However, in the water infrastructure business, construction of pipelines and large treatment plants "continued to hold up well," Schmitt said.