G&K Services sinks to new 52-week low on lowered Q1 guidance

G&K Services Inc. (Nasdaq:GKSR) is down 5% after falling to a new 52-week low this morning on the news that its fiscal first-quarter revenue will be lower than expected and that it will be implementing a series of cost-cutting measures.

In a statement issued after the bell on Monday, G&K Services blamed ongoing economic softness for the moves. The Minneapolis, Minn.-based provider of branded identity apparel programs and facility services said it plans to close three plants, cut jobs and outsource certain plant functions in an effort to reduce expenses.

For the fiscal 2009 first quarter, the company now expects earnings of $0.07 to $0.09 per diluted share and revenue to be in the range of $245 to $246 million.

Analysts polled by Thomson First Call were expecting earnings per share of $0.56 on revenue of $251.6 million.

By midday, G&K Services is at $28.81, down $1.20 from Monday's close, after having fallen as low as $24.49 earlier in the day. Previously, the stock had traded between $28.08 and $44.46.

For detailed price information and news stories on G&K Services, click GKSR.

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