Layne Christensen Down After Analyst's Caution

NEW YORK (AP) — Shares of Layne Christensen Co., which provides mineral and construction services, tumbled Friday after an analyst warned that the company's near-term earnings growth faces obstacles.

Morgan Joseph analyst Richard S. Paget said in a client note that "uncertainties in the mining sector and budget issues with the company's water customers could curtail near-term earnings growth."

He expects the Mission Woods, Kan., company's fiscal 2009 fourth-quarter earnings report, set for release Monday before the market opens, will show a drop of 10 cents per share from the year-earlier figure of 50 cents.

Analysts polled by Thomson Reuters also expect, on average, expect 40 cents per share.

Paget, who has a "Hold" rating on the stock, anticipates Layne Christensen's mineral exploration and energy divisions will report decreased volumes on Monday. He attributed that to weak commodity prices that are restraining the capital expenditures of some Layne Christensen customers.

However, the company's water and wastewater infrastructure division will show "high single-digit organic growth," he added.

In afternoon trading, the stock fell $2.05, or 9.5 percent, to $19.60.