Checkpoint Systems posts 4Q loss on restructuring

Checkpoint System loses money in its 4th quarter on restructuring charges, other items

Associated Press

PHILADELPHIA (AP) -- Checkpoint Systems Inc., which makes radio-frequency identification tags used to help stem retail theft, said Thursday that it lost money in its fourth quarter, with its results pulled down by restructuring charges, a litigation settlement and other items.

The results hurt the stock, which fell in Thursday trading.

Checkpoint Systems lost $19.1 million, or 47 cents per share, for the period ended Dec. 25. That compares with net income of $7.6 million, or 19 cents per share, in the corresponding period in 2010.

Taking out the restructuring charges and other items, the company lost 10 cents per share.

Selling, general and administrative expenses increased 4 percent over the prior year, to $74.2 million.

Revenue rose 8 percent to $251.6 million, from $232 million, benefiting from the acquisition of Shore to Shore Inc.

Chairman, President and CEO Rob van der Merwe said in a statement that customer orders improved during the quarter.

"While ongoing global economic uncertainty and unpredictable retailer behavior impacted our 2011 results and remains a concern near-term, we are taking the necessary actions to position Checkpoint for profitable growth," he said.

For the year, Checkpoint Systems lost $66.6 million, or $1.64 per share. In 2010, it earned $27.7 million, or 69 cents per share.

Adjusted earnings for the full year were 47 cents per share.

Full-year revenue climbed 5 percent to $865.3 million, from $821.7 million.

The Philadelphia company said it is still on track for its restructuring plan to help lower its costs by about $59 million annually by 2013.

Checkpoint Systems forecast 2012 adjusted earnings in a range of 55 cents to 76 cents per share, and revenue between $845 million and $875 million.

The company's stock fell 86 cents, or 7.2 percent, to $11.07 in afternoon trading. The shares have traded in a 52-week range of $10.50 to $22.83.

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