Pinkerton’s Predicts ‘Below-Target’ Results

Pinkerton’s Inc., citing a softening market for security guards, said its second-quarter financial results “apparently will be significantly below corporate targets.”

The Van Nuys-based security services concern did not specify what its targets had been. In the same quarter a year ago, Pinkerton’s earned $2.8 million on revenue of $142.3 million.

The disclosure triggered a selloff in Pinkerton’s stock, which plunged $5.75 a share, to $16, after the announcement last Thursday. The stock closed Monday at $15 a share in national over-the-counter trading.

Pinkerton’s Chairman Thomas W. Wathen said that “although the total number of Pinkerton clients and revenues are still increasing, the average level of service used by many U. S. and Canadian clients has declined, presumably due to recession-related cost cutting.”

Pinkerton’s employs 45,000 people.