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UPDATE 1-American Reprographics slashes profit view; shares fall
October 11, 2010 / 2:00 PM / 7 years ago

UPDATE 1-American Reprographics slashes profit view; shares fall

* Cuts FY EPS view to $0.04-$0.09 from $0.15-$0.30

* Cites weaker-than-expected demand

* Sees operating cash flow $50-$60 mln

* Shares tumble 24 pct

Oct 11 (Reuters) - American Reprographics Co ARP.N, which provides document-management services to businesses, slashed its full-year earnings outlook due to weak demand in the commercial construction market, sending its shares down 24 percent.

The company, which primarily serves the architectural, engineering and construction industry, see adjusted earnings of 4-9 cents a share. It earlier forecast earnings of 15-30 cents a share.

“Until confidence is restored in the market, we are likely to see continued delays in the kind of new commercial construction projects that drive demand for our services,” Chief Executive K. Suriyakumar said.

He added that the company’s cash position remains strong and that it can “comfortably” meet its financial obligations.

The company expects operating cash flow in the range of $50-$60 million, down from its prior expectations of $65-$80 million.

Shares of the Walnut Creek, California-based company were down 17 percent at $6.52 in Monday morning trade on the New York Stock Exchange. The stock has lost nearly a third of its value since touching a 52-week high in April. (Reporting by Soham Chatterjee in Bangalore; Editing by Anne Pallivathuckal)

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