(Reuters) - Drilling and construction services provider Layne Christensen’s (LAYN.O) quarterly profit fell as its water infrastructure segment continued to be plagued by cutbacks in municipal spending due to a weak economy.
The water infrastructure division, which contributed about 73 percent to the company’s first-quarter revenue, provides drilling, water treatment and construction services to municipalities, water utilities, mining companies, heavy civil construction contractors, and oil and gas producers.
The profit fell to $3.7 million, or 19 cents per share, from $13.1 million, or 66 cents per share, a year earlier. Last year’s net income included a gain of 15 cents per share from the sale of a facility in Fontana, California.
Revenue rose 3.4 percent to $276.5 million.
Layne shares, which have fallen 23 percent so far this year, closed at $18.60 on Monday on the Nasdaq.
Reporting by Swetha Gopinath in Bangalore; Editing by Maju Samuel