American Power Conversion Corp., a maker of devices that protect electronic
equipment from power surges, said first-quarter profit dropped 39
percent as businesses invested less in new equipment.
Net income dropped to $16.6 million, or 8 cents a share, from
$27.2 million, or 14 cents, a year earlier, the company said in a
statement. Revenue declined 16 percent to $296.7 million from
$355.1 million a year before.
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American Power has been firing workers and shutting plants
overseas to cope with a decline in demand for its products as
businesses and consumers spend less on computers and electronics.
The West Kingston, Rhode Island-based company said it recorded
costs of $5.2 million, or 3 cents a share, during the quarter to
cover the expense of firing workers and closing factories.
Excluding those expenses, profit was 11 cents a share, the
company said. The company was expected to earn 12 cents, the
average forecast of analysts surveyed by Thomson Financial/First
Call.
Bloomberg News
