Shares of ABM Industries tumble on lower guidance

Shares of ABM Industries Inc. plunged Friday after the facility services contractor lowered its earnings guidance for fiscal 2008.

The company said Thursday it expects net income from continuing operations of $1 per share to $1.05 per share, or $1.10 per share to $1.15 per share excluding one-time items.

That estimate excludes the company's Amtech Lighting Services business, which was presented as a discontinued operation as ABM has agreed to sell it to Sylvania Lighting Services.

In June, ABM said it expected to earn $1 per share to $1.15 per share for the year, or $1.20 per share to $1.35 per share excluding one-time items.

The company said its latest estimate for net income from continuing operations was comparable with its earlier net income guidance.

Shares of ABM dropped $4.80, or 18.5 percent, to $21.13 in late trading Friday.

On Thursday, ABM reported a 37 percent increase in fiscal third quarter earnings. Net income for the three months ended July 31 climbed to $16.4 million, or 32 cents per share, from $12 million, or 24 cents per share, during the year-ago period.

The results included the effects of discontinued operations, including Amtech Lighting Services. Proceeds from the Amtech sale and amounts anticipated from retained assets are expected to total about $70 million to $75 million, ABM said.

Sales and other income rose 35 percent to $930.6 million from $690.9 million.

"During the third quarter, we continued to experience growth in revenue and operating profit in our janitorial, parking, security and engineering segments," Henrik Slipsager, ABM's president and chief executive, said in a statement.