- This topic has 0 replies, 1 voice, and was last updated 9 years, 9 months ago by
.
-
Posts
-
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.
- You must be logged in to reply to this topic.