Layne Christensen's 3Q profit rises 23 percent

MISSION WOODS, Kan. - Layne Christensen Co., which provides drilling and construction services, said Thursday its third-quarter profit rose 23 percent as record revenue offset higher costs.

For the three months ended Oct. 31, net income climbed to $12.2 million, or 63 cents per share, compared with $9.9 million, or 59 cents per share, a year ago. That quarterly result topped analysts' expectations, on average, of earnings per share of 66 cents.

The number of shares outstanding increased during the recently completed quarter by 15.3 percent.

Revenue increased 17.4 percent to a record $264.5 million, slightly less than the $265.7 million analysts expected.

Selling, general and administrative expenses increased to $35.7 million and $105.3 million.

"Currently, the customers on the minerals side are reducing exploration programs," Chief Executive Andrew B. Schmitt said in a statement. "On the water side, projects have become more price competitive, however, to this point volume has been less impacted."

Shares of Mission Woods, Kan., company fell 96 cents, or 5.4 percent, to $16.85 in Thursday morning trading.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.