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Cintas 3Q Profit Falls 12 Percent, Missing Outlook

The Associated Press

CINCINNATI (AP) — Corporate uniform supplier Cintas Corp. said Wednesday that its fiscal third-quarter profit fell 12 percent as it struggled amid the slowing economy.

The company said it earned $71.8 million, or 47 cents per share, down from $81.8 million, or 53 cents per share, during the same period last year.

Revenue fell 7 percent to $908.6 million, from almost $976 million a year ago.

Analysts surveyed by Thomson Reuters were expecting a profit of 48 cents per share on revenue of $959.4 million.

"We have not seen such a sudden and dramatic change in our business since we started our company in 1968," Chief Executive Scott D. Farmer said in a prepared statement.

He said Cintas reduced operating costs by $50 million in the quarter that ended Feb. 28 compared with the same period last year. The company's headcount fell more than 9 percent.

He said Cintas is still looking to expand its document management business, including its purchase of Munich-based Aktenmuhle. He said Cintas will look for more expansion opportunities in document management both in the U.S. and overseas.

Cintas withdrew its 2009 guidance in December, and didn't issue new guidance on Wednesday.

Shares closed earlier up 73 cents, or 3 percent, at $21.93 and dipped 23 cents in aftermarket trading after the results were announced.