Layne Christensen Company Lowers Q4 Forecast
Layne Christensen Company (Nasdaq: LAYN), today announced that it expects to record a non-cash after-tax impairment charge in the fourth quarter of its fiscal year ended January 31, 2012 of between $70 and $80 million, primarily to reduce goodwill and intangible assets.
Including the impairment charge, the Company anticipates that its net loss will be in the range of $70 to $80 million, or $3.59 to $4.07 per diluted share, for the fourth quarter, and $37 to $46 million, or $1.93 to $2.41 per diluted share, for fiscal year 2012. Excluding the impact of the impairment charge, the Company expects to be at or near break even for the fourth quarter, compared to net income last year of $8.7 million, or $0.45 per diluted share, and expects net income for fiscal year 2012 will be between $31 and $32 million, or $1.59 to $1.64 per diluted share, compared to net income last year of $30.0 million, or $1.53 per diluted share.
The Company is currently exploring strategic alternatives for the Energy exploration and production business segment, and an additional charge may be required in fiscal 2013 should those alternatives include a sale at less than its current book value of approximately $50 million.
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