UniFirst 2Q profit slides as laundering biz wanes
WILMINGTON - UniFirst Corp., which rents and sells uniforms and protective clothing, reported that its second-quarter profit fell 11 percent and the company said hiring will lag behind any economic rebound.
Shares fell $2.08, or 4 percent, to $51.45 during midday trading.
Money from laundering operations fell by $5.3 million to $26.8 compared with the same three months last year. Still, a number of shutdowns a nuclear plants helped pare losses, with revenues in the company's cleanroom operations rising nearly 15 percent.
Profit for the three months ended Feb. 27 fell to $16.2 million, or 83 cents per share, from $18.3 million, or 94 cents per share a year ago. Revenue fell about 1 percent to $253.6 million from $257.3 million. Revenue from its core laundry operations fell 3 percent to $227.3 million.
Unifirst said it entered into a long-term employment agreement with chief executive Ronald D. Croatti. Under terms of the deal, Croatti will be CEO for the next six years and can earn up to 35,000 shares over that period. He also received a restricted stock grant for his work in 2009 of 50,000 common shares which vest over the next six years.