said latest-quarter profit fell, but the company guided toward the high end of its previous earnings projections.
The Menasha, Wis.-based company earned $15.9 million, or 65 cents a share, in the third quarter, compared with $21.7 million, or 89 cents a share, a year ago. Third-quarter earnings included stock options expense of 5 cents a share. Earnings from continuing operations excluding special charges and reserve reversal were $20.4 million, or 83 cents a share. On that basis, analysts surveyed by Thomson First Call were expecting earnings of 80 cents a share.
Third-quarter revenue fell 0.3% from a year ago to $382.4 million as against analysts' estimate of $388.8 million.
The company confirmed its earnings guidance of $2.58 a share to $2.68 a share from its continuing operations for the full year 2006. Excluding items, earnings from continuing operations were expected to be $2.80 a share to $2.90 a share. Earnings will be at the high end of the guidance range, Banta added. Analysts were expecting earnings of $2.76 for the full year.
"We identified, and initiated, a comprehensive series of strategic initiatives and cost-containment actions that will position both our print and supply-chain management businesses to accelerate growth, and deliver sustained annual cost savings of $27 million in 2007, and $35 million in 2008," the company said.
Second-quarter gross profit fell 3.5% from a year ago to $83.7 million and gross margin declined 90 basis points to 21.9%. Operating income for the quarter fell 31.4% to $21.1 million and operating margin declined 260 basis points to 5.5%.
By segment, second-quarter revenue from printing services fell 4.5% from a year ago to $271.1 million and revenue from management services segment increased 14.3% to $111.3 million.
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