NORTHBROOK, Ill. (AP) -- Pump maker IDEX Corp. on Monday reduced its third-quarter guidance and said it would cut management jobs and close a facility. Its shares fell more than 11 percent.
The company also said a major retailer plans to switch to a competitor for replacement pumps.
IDEX said it would eliminate some managers and administrative workers and close a facility in addition to its previously announced closure in Milan, Italy. It said the restructuring would save it as much as $14 million a year beginning in 2009.
IDEX shares fell $3.26, or 11.3 percent, to $25.58 in morning trading. The stock earlier hit a new year low of $24.80. It has ranged from $25.77 to $40.75 over the past year.
IDEX said third-quarter revenues would rise 9 percent from a year ago, to $365 million. The company previously forecast growth of 14 percent to 16 percent.
Excluding a restructuring expense, it said it expects to earn 52 cents to 53 cents per share in the third quarter, compared with previous guidance of 53 cents to 56 cents per share. Analysts surveyed by Thomson Reuters expected a profit of 55 cents per share.
IDEX said revenue growth within its Dispensing Equipment segment is down more than 20 percent because of deteriorating capital spending among its customers. In addition, it said its fluid metering business only grew 5 percent in the quarter. It had expected growth closer to 10 percent.
IDEX also said the strengthening dollar reduced revenue by 1 percent to 2 percent.
Chairman and Chief Executive Larry Kingsley blamed a deteriorating economy in Europe and North America for "a significant reduction in orders for capital equipment within retail paints and coatings."
"It is clear that we are experiencing a slower economic environment which will result lower organic growth," he said in a statement.
He said the company is focusing on cost reduction while still investing in end markets that should perform better than the overall economy.
IDEX, which last week said it is buying pump maker Richter Chemie-Technik, said on Monday that it was also "expecting to close additional acquisitions in the next 30 to 45 days" which it did not specify. Including the Richter Chemie-Technik buy, IDEX said it expects to pay $230 million to $240 million for the acquisitions.