International Game Technology 1Q profit climbs 20 pct as cost cuts offset 14 pct drop in sales
By APThursday, January 21, 2010
International Game Technology 1Q profit climbs
RENO, Nev. — International Game Technology, a maker of electronic gambling machines, said Thursday that its fiscal first-quarter profit rose 20 percent as cost cutting measures more than offset a sales decline.
Quarterly revenue fell 14 percent in the weak economy to $515.7 million from $601.6 million, disappointing analysts who had expected sales of $531 million. But International Game trimmed its costs by 25 percent to $375.4 million from $501.5 million.
That helped the company — which sells casino-style slot machines and applications for casino management — report a better-than-expected profit. Shares rose 6 percent in after-hours trading.
The Reno, Nev., company earned $73.3 million, or 25 cents per share, in the quarter that ended Dec. 31. That’s up from the $61.2 million, or 21 cents per share, it earned a year earlier, which included restructuring costs and interest payments. It also easily beat the 20-cent-per-share estimate of analysts polled by Thomson Reuters.
IGT shares rose $1.27 to $21.47 in after-hours trading Thursday, having closed the regular session down 11 cents at $20.20.
