Ahead Of The Bell: Layne Christensen

HARTFORD, Conn. (AP) — Reduced demand for mineral exploration could hurt drilling and construction services provider Layne Christensen Co., which is scheduled to report its fiscal first-quarter earnings Tuesday, two analysts said.

"Everyone expects a down quarter," Janney Montgomery Scott analyst Debra G. Coy said in a note to investors.

Coy said she expects earnings for the first quarter will be 17 cents per share, "although we have limited confidence in that number."

Analysts surveyed by Thomson Reuters expect earnings will 16 cents per share.

Analyst Richard S. Paget of Morgan Joseph said he expects earnings will be 20 cents per share.

Earnings pressure on the Mission Woods, Kan.-based company is primarily due to its mineral exploration segment, Coy and Paget said. Demand for the company's drilling services remains weak as mining companies focus on conserving cash, Coy said.

Layne Christensen's water infrastructure segment, which is its largest business, "should continue to hold up relatively well," she said.