Checkpoint 3Q profit falls on restructuring

THOROFARE, N.J. - Checkpoint Systems Inc., which provides merchandise security products and services for retailers, said Wednesday third-quarter earnings dropped 11 percent as demand in Europe and for its closed-circuit TV services slowed.

Net income slid to $12.8 million, or 32 cents per share, from $14.3 million, or 35 cents per share, last year.

Revenue rose 14 percent to $234 million from $204.6 million last year.

The company also booked a charge for a litigation settlement and had higher selling costs.

Checkpoint said its previously announced restructuring plans will cost it $3 million, or 7 cents per share, by the time it is done in 2010.

The company has already booked $700,000, or 2 cents per share, in related charges in 2008, and expects the year's total to reach $2 million, or 4 cents per share.

The move, which will affect its manufacturing and supply chain, aims to save about $6 million a year. It also anticipates another charge of 3 cents per share to expand capacity as part of the restructuring.

For the full-year, Checkpoint reduced its revenue and earnings forecast citing current market conditions, and its belief they will not change significantly in 2008.

Checkpoint shares slumped $1.12, or 8.7 percent, to $11.74 in early trading. In the past year, the stock has ranged from $10.57 to $28.38.

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