March 25, 2014 / 9:11 PM / 4 years ago

UPDATE 1-IGT cuts 7 pct of jobs, lowers 2014 profit forecast

* Says expects to save $30 mln this year

* Cuts 2014 adj profit forecast to $1.00-$1.10/share

* Shares fall as much as 11 pct after market (Adds CEO comment, details, background; updates shares)

March 25 (Reuters) - Slot-machine maker International Game Technology said it would cut 7 percent of its workforce and lowered its adjusted earnings forecast for the year, citing a steeper-than-expected fall in gaming revenue in North America.

The company, whose shares fell as much as 11 percent in extended trading, had 5,000 employees as of Sept. 30.

“We did not expect such a sharp decline in North American gross gaming revenues, or further degradation in the international currency, compliance, and importation environment,” Chief Executive Patti Hart said in a statement.

IGT, which has reported a decline in gaming revenue for five straight quarters, said it expected adjusted earnings from continuing operations of $1.00-$1.10 per share in the year ending September. It had forecast $1.28-$1.38 in November, 2013.

Analysts on average expect a profit of $1.20 per share, according to Thomson Reuters I/B/E/S.

IGT also forecast adjusted earnings from continuing operations of 17-19 cents per share for the current quarter, far below the average analyst estimate of 29 cents.

The company said it expected to save $30 million in the current fiscal year and about $50 million on an annual run-rate basis.

IGT added that it expected to recognize $8.0 million-$9.0 million in non-recurring cash charges related to the job cuts in the second quarter. (

The company also said it expected additional non-recurring non-cash charges of between $6.0 million and $8.0 million related to asset impairments during the second quarter.

IGT shares have fallen about 18 percent this year to Tuesday’s close of $14.85 on the New York Stock Exchange. (Reporting by Maria Ajit Thomas in Bangalore; Editing by Don Sebastian)

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