Seeking Alpha

Layne Christensen plans big cost cuts as losses mount

  • 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.
Comments (1)
  • redbaron
    , contributor
    Comments (878) | Send Message
     
    Too little, and too late. Where we these guys for the last couple of years?
    16 Jun, 08:44 AM Reply Like
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