Deluxe Corp. is closing three manufacturing facilities and a call center and cutting 570 employees to cope with the slowing U.S. economy.
The Shoreview printer of checks and business forms also slashed its third-quarter earnings forecast Wednesday while adjusting its 2008 outlook to include restructuring and other one-time charges.
Looking ahead, Deluxe now expects third-quarter earnings of 29 to 33 cents a share. In July, it had predicted earnings of 56 to 60 cents a share.
Deluxe plans to close manufacturing facilities in Greensboro, N.C.; North Wales, Pa.; and Thorofare, N.J., as well as its call center in Thorofare. The job cuts are likely to be completed by the end of September.
Chief Executive Lee Schram said the closings, a "strategic focus on driving higher-growth business services from our recent acquisitions," enhanced e-commerce capabilities and maintaining the core check businesses "will better position Deluxe to accelerate our transformation in a challenging economic environment."
For all of 2008, Deluxe now expects earnings of $2.25 to $2.35 a share on revenue of $1.52 billion to $1.54 billion. In July, Deluxe expected earnings of $2.52 to $2.62 a share.
Deluxe shares rose 53 cents, or 3.15 percent, to close at $17.35 Wednesday.
In July the company reported a 9 percent drop in second-quarter net income, saying reductions in manufacturing costs were more than offset by the lower revenue per order in Deluxe's financial services business and higher delivery costs, mostly from fuel surcharges.
