IGT To Lay Off 7% Workforce, Cuts FY Outlook; Shares Down

(RTTNews) - International Game Technology (IGT) Tuesday revealed plans to lay off seven percent of its workforce, as the slot-machine maker strives to curb costs. The Las Vegas, Nevada-based company also lowered its financial outlook for the full year 2014, sending its shares plunging seven percent in extended trading hours.

IGT said the implementation of cost saving measures and laying off 7 percent of its global workforce, were needed to "address the challenges facing the gaming industry." IGT expect the move to save about $30 million in the current fiscal year and an estimated $50 million on an annual run-rate basis.

IGT makes casino-style gaming equipment, systems technology, and game content for land-based and online markets.

The company also lowered its full-year 2014 adjusted earnings from continuing operations outlook to a range of $1.00 to $1.10 per share from its prior outlook of $1.28 to $1.38 per share. Analysts polled by Thomson Reuters currently estimate earnings of $1.20 per share for the year. Analysts' estimates typically exclude one-time items.

IGT expects second-quarter adjusted earnings from continuing operations of $0.17 to $0.19 per share. Analysts currently estimate earnings of $0.29 per share for the quarter.

"As we reach the halfway point in our fiscal year, you can see this is a challenging time for the industry and IGT. We knew that our success in 2013 would be difficult to replicate. However, we did not expect such a sharp decline in North American gross gaming revenues, or further degradation in the international currency, compliance, and importation environment," said Patti Hart, IGT CEO.

IGT closed Tuesday's trading at $14.85, up $0.05 or 0.34%, on the NYSE. The stock, however, dropped $1.30 or 8.75% in after-hours trade.