Cintas gives weak 4Q outlook, expects charge

Corporate uniform supplier Cintas Corp. on Friday forecast fiscal fourth-quarter results below Wall Street estimates, and said it will take a $50 million charge in the period as it restructures to lower its future expenses.

Cintas said it expects a profit of a penny to 4 cents per share for the quarter ending May 31. Excluding the restructuring charge, the company expects income of 34 cents to 37 cents per share. The company projects $870 million to $885 million in revenue.

On average, analysts polled by Thomson Reuters expect income of 47 cents per share on $923.2 million in revenue.

"The U.S. economy continues to lose employment at a rapid rate, directly impacting our customers and prospects," said Cintas Chief Executive Scott Farmer in a statement. He said it is not clear when the economy will recover, and the company chose to reduce its costs in response to the job losses of recent months.