Northbrook's Idex cuts forecast

Idex Corp., the maker of equipment that measures and dispenses paints and tints, said it reduced its third-quarter earnings and sales forecast after losing a contract and plans to slash costs by cutting jobs and consolidating facilities.

The company projects third-quarter earnings of 52 cents to 53 cents a share, excluding restructuring costs, down from its previous forecast of 53 cents to 56 cents, according to a statement. Sales are forecast to rise 9 percent to $365 million, down from a previous projection of a 14 percent to 16 percent increase.

Idex is reducing costs after a "major retailer" chose a competitor's dispensing equipment for its replacement program, the Northbrook-based company said in the statement. The retailer wasn't named. A slowing economy has also hurt sales, Idex said.

The average of 12 analyst estimates compiled by Bloomberg was for earnings of 54 cents a share. Idex fell $2.20, or 7.6 percent, to $26.64 at 4:17 p.m. in New York Stock Exchange composite trading.

Idex plans to cut an unspecified number of employees and consolidate facilities. The cost-reduction plan, which includes the previously announced shutdown of a factory in Milan, Italy, will save $13 million to $14 million starting next year. Idex expects the plan will result in charges of about $14 million, including $5 million to $6 million for the plant closure.

The company expects to acquire more companies over the next 30 to 45 days in addition to the purchase of Richter Chemie- Technik that it announced last week. The combined acquisitions will cost $230 million to $240 million in cash and add $130 million to $140 million to 2009 sales. The purchases are expected to be accretive to 2009 earnings, Idex said.