LESCO slashes 2003 sales and earnings estimates; announces cost-cutting measures
10 Jul, 2003 LM Week in ReviewCompany seeks to save $4 million in expenses
Cleveland — LESCO announced a downward revision of its 2003 sales and earnings estimates.
2003 net sales are now expected to grow 3 to 4 percent, rather than 6 to 8 percent as previously forecast. 2003 earnings per share (EPS) are now forecast at $0.15 to $0.20, compared to the company's February prediction of $0.65 to $0.75 for 2003.
The Company's expense budgets for 2003 were based upon the previous estimate of sales growth. In light of the new forecast, the company is taking additional cost cutting steps including reductions in sales and corporate staff, resulting in an annualized reduction of expenses of approximately $4 million. The company is also evaluating opportunities to reduce warehouse and delivery costs.
The natural gas shortage and its impact on fertilizer prices is also causing the company problems. LESCO plans to increase fertilizer and combination fertilizer prices, but says it cannot pass the entire increase along to customers.
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