Downers Grove, IL, October 11, 2006-- Servicemaster reduced its full-year profit outlook due to the effects of warmer than usual summer weather and other factors.
The company said it now expects yearly earnings from continuing operations will be between $0.59 cents and $0.61 per share. Excluding restructuring charges, earnings will be between $0.61 to $0.63 per share.
Previously, the company said it expected double-digit earnings per share growth in 2006 from a base of earnings from continuing operations of $0.61 per share.
Analysts are expecting a profit of $0.66 per share, according to a poll by Thomson Financial.
For the recently completed third quarter, earnings from continuing operations are estimated at $0.20 to $0.21. Analysts were expecting a profit of $0.25 per share.
The company said warm weather during the summer hurt results for many of its divisions. At American Home Shield, its security unit, heat and inflation raised claim costs. At TruGreen ChemLawn, its landscape unit, weather caused an increase in service calls while sales of supplemental services dropped. At Terminix, ServiceMaster's pest control unit, results were also hurt by the effect of a "weak termite swam season."
