Layne Christensen plans big cost cuts as losses mount

|About: Layne Christensen Company (LAYN)|By:, SA News Editor

Layne Christensen (LAYN) -4% premarket after reporting a much wider than expected Q1 loss and misses revenue expectations.

Heavy-civil revenue fell 33% Y/Y to $49.4M amid weather-induced project delays that also resulted in additional costs, mineral services revenue slid 46% to $29.5M as LAYN warns that challenges likely will persist throughout the year; geoconstruction revenue jumped 51% to $32.6M, and inliner revenue rose 11% to $33.5M.

LAYN says it is evaluating options for certain assets and businesses that have underperformed and also is taking measures to contain costs.

Says it expects to see $12M-$20M in annual cost savings, ~25% during the remainder of the FY 2015 year.