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DELUXE ANNOUNCES RESTRUCTURING OF CHECK PRINTING OPERATIONS AND CHARGE TO SECOND QUARTER EARNINGS

 ST. PAUL, Minn., June 7 /PRNewswire/ -- Deluxe Corporation (NYSE: DLX) announced today that it plans to close up to 16 of its more than 60 check printing division facilities in order to take full advantage of its proprietary printing technology. The company said that in connection with the plant closings it expects to record a pretax restructuring charge of $65 million in the second quarter.
 Deluxe also said that it expects second quarter net income to be approximately 12 percent below last year's income for the same period, before any charges for restructuring. Full-year earnings are anticipated to equal the $2.42 per share earned in 1992, before restructuring charges.
 Chairman and CEO Harold V. Haverty said that the company has installed new printing equipment over the past five years that has greatly increased its check production capacity. "Our new presses are much more productive than the equipment we had been using," said Haverty. "With these new systems and electronic network capabilities, we do not need as many check printing facilities. The restructuring will enhance our ability to respond to competitive challenges in the financial institution check market, and we anticipate full recovery of the restructuring charge through operating cost savings over the next two and one-half years."
 The company said that the plant closings and other restructuring moves will take place over the next nine months and will result in the relocation or termination of approximately 875 of its 10,300 check printing division employees. Manufacturing space will be reduced by more than 330,000 square feet.
 Deluxe opened more than 40 check printing facilities from 1970 to 1985 in order to serve the U.S. check market. "Our restructuring plan will take full advantage of our technology to meet the needs of the marketplace, allowing us to reduce the number of production sites," Haverty said. "This action will not limit our continuing internal development of new products and services, acquisitions, and ongoing research and development," Haverty said.
 Haverty also stated that the company's recently announced water- washable lithographic printing system is being phased into manufacturing facilities and that the company is on schedule to have it in all of its printing locations by the end of this year. "We expect to announce our plans to market this revolutionary printing technology within the next few months," Haverty said.
 Deluxe Corporation is an industry leader in providing products and services to the financial payment systems industry. The company is the nation's largest check printer and also provides electronic funds transfer (EFT) processing services and software, debit and credit card services, and account verification services to financial institutions. The company also provides check authorization services to retailers. Deluxe's Business Systems Division produces a variety of computer and business forms and related products for small businesses and professional practices; it also provides tax forms and electronic tax filing services to independent tax preparation professionals. The company's Consumer Specialty Products Division markets greeting cards, gift wrap stationery and a variety of related products to households.
 -0- 6/07/93
 /CONTACT: Stuart Alexander, vice president, corporate public relations, 612-483-7358, or Charles M. Osborne, senior vice president and chief financial officer, 612-483-7355, both of Deluxe Corporation/
 (DLX)


CO: Deluxe Corporation ST: Minnesota IN: PUB SU: RCN

DB -- MN023 -- 6224 06/07/93 16:55 EDT
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Publication:PR Newswire
Date:Jun 7, 1993
Words:550
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