Boston, MA 06/17/2014 (wallstreetpr) – Layne Christensen Company (NASDAQ:LAYN) on June 16, 2014 announced that the company is about to take vital steps in order to cut down on the costs. This will also include revision of under performing assets as well as operations. The company announced that this was a necessary step in order to improve the operating results.
Evaluation Of Options For Cost-Cutting
Layne Christensen Company (NASDAQ:LAYN) said that the company was reviewing and assessing the options in context with the a few assets as well as businesses which have not been performing as per the mark and this step is being taken in order to contain the costs. With the help of this, the company said, it expected to see an annual cost saving of $12 million to $20 million. The company also expects that approximately 25% of these savings will be realized during the rest of the 2015 FY.
Declining Mineral Exploration Pressuring Company
In the past few quarters there has been a diminishing trend in the mineral exploration activities, and it is because of this factor that the company has come under pressure. In the previous week, Layne Christensen Company (NASDAQ:LAYN) had also said that it wanted to increase the deadline for completing its operational analysis as well as the financial outlook.
Widening Q1 2014 Loss
The company said that the financial loss in the first quarter of the present fiscal year has widened tremendously because of the steep revenue drops in heavy civil as well as mineral services segments. The company said that the revenue in heavy civil segment sunk 33% while the revenues in the mineral service sector dropped 46%. The CEO of the Layne Christensen Company (NASDAQ:LAYN), Rene Robichaud said that the mineral services were operating in the very difficult environment, primarily in Africa and it was most likely that the challenges will persist throughout this year.
