New England Business Service Reduces Expectations for Fiscal Year 2002
Monday, January 07, 2002
GROTON, Mass.--Jan. 2, 2002--New England Business Service, Inc. announced that it has reduced its revenue expectation for the current fiscal year ending June 29, 2002 to between $550 million and $560 million. Due to the lower revenue, earnings per share for fiscal 2002, before restructuring-related charges, are now expected to be in the range of $1.90 and $2.00. The Company recorded revenues of $586 million and earnings per share, before restructuring-related charges, of $1.98 in fiscal 2001. For the recently completed December quarter, the Company expects revenue of approximately $155 million and earnings per share, before restructuring-related charges, to be between $.73 and $.77. This compares to revenue of $166 million and earnings per share, before restructuring-related charges, of $.69 in the prior year's second quarter. Orders across most of the Company's businesses have been weaker than expected due to the current economic conditions. A shortfall in sales of holiday cards has been a significant contributor to reduced expectations for the recently completed second fiscal quarter. Additionally, lower promotional spending by businesses has depressed demand in the Company's apparel segment. The Company noted that despite the reduced revenue and earnings expectations, its consolidated debt is expected to decline by at least $15 million in the second quarter from the $197.3 million outstanding at the end of the first quarter ended September 29, 2001.