Dec 17 (Reuters) - Tennant Co (TNC.N), which makes floor cleaning products, said it expects to post a loss in the fourth quarter and that it was reducing its workforce by about 8 percent as it had been hurt by a slowdown in worldwide sales prompted by the economic downturn.
“The business conditions in North America and Europe have significantly deteriorated, demand for our equipment is much weaker than projected, and we do not see a quick recovery,” Chief Executive Chris Killingstad said.
The company also temporarily suspended its stock repurchase program to cut back on expenses, but said it had no plans of lowering its quarterly dividend.
The company said it had reduced production work schedules at locations with excess capacity and that it was planning not to provide any wage or salary increases in 2009.
Tennant does not plan to close any facilities.
The company said it expects to take a pre-tax charge of 88 cents a share mostly in the fourth quarter. The charge is related mainly to the elimination of 240 jobs.
Tennant, which makes industrial and commercial sweepers, scrubbers, coatings, floor machines and burnishers, sees a fourth-quarter loss of 98 cents to $1.08 a share, including the charge, on revenue of $140 million to $155 million.
Analysts on average were expecting a profit of 51 cents a share on revenue of $187 million, according to Reuters Estimates.
For the alerts, double click [ID:nWNAB3896] (Reporting by A.Ananthalakshmi in Bangalore; Editing by Himani Sarkar)