*NEWS*IKON CUTS 350 JOBS PROFITS FALL 44%

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*NEWS*IKON CUTS 350 JOBS PROFITS FALL 44%

 user 2008-02-14 at 2:02:00 pm Views: 63
  • #20965

    Ikon cutting 350 jobs, 1Q profits fall 44%
    Ikon
    Office Solutions Inc. said Thursday it is eliminating 350 jobs and
    cutting its management’s bonuses because of disappointing results in
    its fiscal 2008 first quarter and to accelerate its cost-cutting
    efforts.The company did not say where the jobs being cut are based.

    Ikon 
    also said Wednesday night that it has created a new operating unit for
    the United States and named Jeffrey W. Hickling president of it. The
    move gives Ikon three operating units — Ikon U.S., Ikon Canada and
    Ikon Europe.The Malvern, Pa., supplier of copiers, related equipment
    and document-management services took a pre-tax charge of $7 million,
    or 4 cents per fully diluted share, in its fiscal first quarter,
    related to the job cuts and other efforts to reduce its spending.With
    that, Ikon earned $15 million, or 13 cents per fully diluted share, in
    the quarter, which ended Dec. 31, 2007. That’s down 44 percent from $27
    million, or 21 cents per fully diluted share, in Ikon’s fiscal 2007
    first quarter.Ikon’s revenue in its fiscal 2008 first quarter was $998
    million, down slightly from $1 billion in the first quarter of its 2007
    fiscal year.Ikon originally had expected to earn 22 to 24 cents per
    fully diluted share in its first quarter, but lowered those
    expectations to 15 to 17 cents on Jan. 10.Ikon Chairman and CEO Matthew
    J. Espe said the company’s equipment revenue in North America was lower
    than expected and its tax rate was higher than expected.The steps Ikon
    is taking to reduce costs should lower its expenses by $25 million in
    fiscal 2008, Espe said.