The weak economy and slowing demand for paper checks drove down third-quarter earnings at the check printer Deluxe Corp.
The St. Paul company said Thursday that revenue fell 5.8% from the same quarter last year to $366.2 million. Net income plunged 57%, to $13.8 million.
The results included a $21.9 million charge related to an ongoing restructuring effort and an unexpected impairment charge of $9.7 million that had not been included in its prior guidance and that Deluxe attributed to "the recent economic downturn and turmoil in the broader U.S. capital markets."
Revenue in Deluxe's financial services unit, which sells check to banks, fell 8.1%. Sales volume dropped 3.7% and revenue per order fell, though Deluxe did not say by how much.
The direct checks unit, which sells checks to consumers, said revenue fell 7.6%, to $46 million, because of a drop in demand and lower response to advertising.