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Archive for Wednesday, December 8, 2010

Kansas-based Layne Christensen 3Q earnings, revenue grow

December 8, 2010

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— Drilling and construction service provider Layne Christensen Co. said Tuesday its fiscal third-quarter net income grew, boosted by lower energy production costs and higher revenue.

The results surpassed Wall Street's expectations and sent Layne's shares higher.

For the three months ended October 31, the company earned $8.2 million, or 42 cents per share, up 24 percent from $6.6 million, or 34 cents per share, in the same period a year earlier.

Revenue also rose 24 percent to $269.7 million from $217.8 million.

Analysts, on average, were expecting earnings of 30 cents per share on revenue of $244.7 million, according to a poll by Thomson Reuters.

The company said revenue in its water infrastructure division jumped 20 percent to $209.9 million, boosted by sales from operations it bought a year earlier and specialty drilling in Afghanistan and elsewhere.

Mineral exploration revenue grew 68 percent to $51.7 million.

Separately, Layne said it is conducting an internal investigation of the legality of payments it made to customs agents related to importing equipment into the Democratic Republic of Congo and other countries in Africa. The investigation is ongoing but Layne said it does not believe the payments are "material" to its financial results.

Layne's shares rose $1.68, or 5 percent, to $35.44 in midday trading. Earlier, the stock hit a 52-week high of $36.92.

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