MINNEAPOLIS (AP) -- Work uniform provider G&K Services Inc. said Tuesday that it had a net loss during its fiscal third-quarter as costs rose faster than revenue and the company paid $24 million in pension-related costs, but it raised its forecast for the full year's revenue and earnings.
The company said it lost $4.8 million, or 26 cents per share, for the quarter that ended March 31. That's compared with net income of $8 million, or 43 cents per share, in the same period last year.
Revenue during the quarter was $218.8 million, up from $210.3 million.
Excluding one-time items, its adjusted earnings were 52 cents per share, compared with 43 cents per share a year earlier.
That beat analysts' expectations for adjusted net income of 49 cents per share on $218.5 million in revenue.
The company said a large pension withdrawal and associated expenses cost $24 million.
But it said its rental division did well, with operating revenue rising to $200.2 million from $192.8 million a year earlier, driven mainly by new account sales, higher revenue from existing customers and higher prices.
"Our core rental business performed well during the quarter, allowing the company to achieve continued revenue and earnings growth," CEO said Douglas Milroy said in a statement.
And it is optimistic about the rest of 2012 and raised the lower end of its forecasts. G&K Services now expects full-year revenue of $860 million to $870 million, up from $855 million to $870 million. And it expects adjusted earnings of $2 to $2.06 per share, up from $1.85 to $2.05 per share.
Analysts were expecting adjusted earnings of $1.98 per share on $866.5 million in revenue.
Shares rose 24 cents to close at $33.10. The stock has traded between $24.24 and $38.65 over the past year.
