US: American Greetings quarterly earnings hit

Higher costs for new Canadian card line sees profit drop.
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The second largest US greeting cards company, American Greetings has seen its net earnings for its fiscal first quarter ending May 30th slip to $13.3 million (or 27 cents per share).

This is down almost 56 per cent from $30.1 million (54 cents per share) a year earlier.

However, revenue rose to $428.3 million from $420 million.

The company blamed higher costs as it introduced a new card line in Canada. However, it said these costs were not permanent and that it would focus on revamping its supply chain to make it more efficient.

American Greetings' forecast for fiscal 2009 earnings remained unchanged at $1.60 to $1.85 a share from continuing operations. The average forecast from analysts is $1.65 a share, excluding one-time items.

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