From The Associated Press
NEW YORK —
Drilling and construction services provider Layne Christensen said Thursday that its fiscal third-quarter net income declined 3 percent as some expenses rose and revenue fell. Earnings from continuing operations topped Wall Street’s view.
The company also announced that it plans to relocate its corporate headquarters to The Woodlands, Texas, near Houston from Mission Woods, Kan.
For the three months ended Oct. 31, Layne Christensen Co. earned $8.5 million, or 43 cents per share. That’s down slightly from $8.8 million, or 45 cents per share, a year earlier.
Earnings from continuing operations were 45 cents per share, matching the prior-year period.
Analysts surveyed by FactSet expected earnings of 41 cents per share.
Depreciation, depletion and amortization expenses increased, along with interest expense.
Revenue dipped 2 percent to $282.9 million from $289.8 million on weaker performances at its inliner, heavy civil and mineral exploration segments.
Wall Street predicted higher revenue of $295.5 million.
Layne Christensen said that its corporate headquarters move is expected to start in the spring and be finished by next winter. The company anticipates charges of about $14 million to $17 million for the relocation.
Chief Operating Officer Jeff Reynolds and Jerry Fanska, senior vice president of finance, have decided not to relocate. Fanska is retiring, but will stay on with the company until a successor is named.
Reynolds will resign effective Jan. 1, 2013 but will remain on the board of directors. His responsibilities will be given to David Singleton and Gernot Penzhorn. The 53-year-old Singleton was promoted to senior vice president of operations - U.S. The 42-year-old Penzhorn was promoted to senior vice president of operations - international.
Singleton previously served as president of the water resources division, while Penzhorn was president of the mineral exploration unit.
Shares of Layne Christensen added 3 cents to $22.60 in afternoon trading. They have traded in a 52-week range of $17.46 to $26.80.