Deluxe Swings to a Profit

SHOREVIEW, Minn. – Check-printer Deluxe Corp. said its restructuring has begun to show results, with the company reporting a $36 million, or 69 cents a share, profit for its second quarter. That compares to a $2.4 million, or five cents a share, loss for the same period last year when the company was in the midst of a reorganization. The net profit comes as revenues declined by 1% in the second quarter to $400 million. Deluxe said each of its three businesses performed better than expected. The financial services segment, which prints checks for credit unions and banks, swung to a $23.2 million profit from a $7.5 million loss in the year-ago quarter. Income in the direct checks segment, which sells personal and business checks, slipped 11% to $14.3 million from $16 million. The company said costs in this unit swelled because of a new type of packaging used in delivery. The small business services segment, which sells printed products such as checks and billing forms to businesses, reported income of $30 million, up from $1.3 million in the second quarter last year.