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 user 2005-03-06 at 10:24:00 am Views: 58
  • #10704
    Ikon to cut about 5
    percent of staff to trim costs

    NEW YORK, March 05  – Ikon Office Solutions on
    Tuesday said it would cut about 1,500 jobs in North America, or 5 percent of its
    global work force, under a restructuring to trim costs and improve operating

    Ikon, which
    provides office equipment such as printers and related services, said it will
    stop providing off-site printing systems for business documents and close 17 of
    its 82 legal document services sites.

    It will also revamp its North American field
    organization and corporate staff to focus on growth areas such as color printers
    and professional services, which evaluate clients’ printing needs and suggest
    machines they should buy or lease.

    Ikon, which considers Xerox Corp. a rival, is the
    primary U.S. distributor for Canon Inc.  and Ricoh Co. Ltd. and sells several Hewlett-Packard Co. machines. Ikon has
    in the past few years focused on high-end products with greater margins as it
    shed poorly performing assets and cut staff.

    Ikon on
    Tuesday also said it has sold almost all of its operations in Mexico. It will
    retain sites in Mexico City, Monterrey and Guadalajara, and operate its
    remanufacturing facility in Tijuana.

    company expects to take charges of $38 million to $52 million, or 18 cents to 25
    cents a share, for the actions.

    Ikon said
    it expects to take a significant portion of the charges in the fiscal second
    quarter and the rest through the remainder of the fiscal year ending in

    company said it still sees a fiscal 2005 profit of 63 cents to 68 cents a share,
    excluding one-time costs, and expects to fare better in fiscal 2006.

    to Reuters Estimates, analysts on average are expecting 2005 earnings of 64
    cents per diluted share, and 2006 earnings of 77 cents per diluted share.

    Shares of
    Ikon edged up 10 cents to $10.65 on the New York Stock Exchange shortly after