Zebra Technologies 1Q Profit Falls

VERNON HILLS, Ill. (AP) — Zebra Technologies Corp. reported a 66 percent drop in first-quarter earnings Tuesday, blaming lower demand and restructuring costs.

The company, which makes bar code and plastic card printers, also offered a sales forecast for the quarter ending in June that fell below Wall Street forecasts.

Shares dropped 78 cents, or 3.6 percent, to $20.50 in afternoon trading.

Zebra said it earned $9.4 million, or 16 cents per share, in the three months ended April 4, compared with $27.6 million, or 42 cents per share a year earlier. Included in the latest quarter, however, was a charge of 2 cents per share for restructuring and integration costs.

Adjusted earnings came to 18 cents per share, 2 cents higher than the average analyst estimate, according to a survey by Thomson Reuters. Analysts typically exclude special charges.

Sales fell 22 percent to $192.6 million from $246.3 million. Analysts were looking for $201 million.

The company said the global economic downturn hurt demand in all regions, with the largest decline coming in North America. Higher performance and midrange printers saw the worst of the slump, the company said.

For the second quarter, the company projected earnings of 12 cents to 20 cents per share, including restructuring charges of 4 cents per share. Analysts are expecting 23 cents.

But the company's sales forecast, calling for $186 million to $200 million, fell below the average projection of $210.8 million.