American Greetings’ Profit Slides; Job Cuts Due

American Greetings Corp. reported a 14% decline in quarterly earnings and said it will cut 1,500 jobs, or 13% of its work force, as part of a restructuring. The 95-year-old greeting card maker is being hurt by increased competition on the Internet and demand for lower-priced cards. It also warned that profit for the current year will fall well below analysts’ expectations. The company’s own online venture, AmericanGreetings.com, has been a drag on profit. American Greetings said operating earnings fell to $48.4 million, or 76 cents a share, in its fiscal fourth-quarter ended Feb. 28, a penny better than analysts’ lowered forecasts. Sales rose 8% to $663.2 million. For the new fiscal year, the Cleveland-based company now expects to earn $1.10 to $1.20 a share, well below the $1.38 forecast of analysts polled by First Call/Thomson Financial. American Greetings said it will also shrink product lines and consolidate facilities. The restructuring will result in a charge of $200 million to $220 million, the company said. Shares of American Greetings fell $1.32 to close at $13.02 on the NYSE.