Checkpoint Systems Inc. is a multinational manufacturer and marketer of retail asset tracking and protection products including integrated security automatic identification and retail merchandising solutions. The company is a leading provider of radio frequency and electromagnetic electronic article surveillance systems and tags security source tagging handheld labeling systems bar code labeling systems and retail merchandising systems. Checkpoint Systems Inc. has a market cap of $625.9 million; its shares were traded at around $16.1 with a P/E ratio of 22.7 and P/S ratio of 0.7. Checkpoint Systems Inc. had an annual average earning growth of 8.3% over the past 10 years. Highlight of Business Operations:In August 2008, we announced a manufacturing and supply chain restructuring program designed to accelerate profitable growth in our ALS business and to support incremental improvements in our EAS systems and labels businesses. We anticipate this program to result in total restructuring charges of approximately $3 million to $4 million, or $0.06 to $0.08 per diluted share. We continue to expect implementation of this program to be complete in 2010 and to result in annualized cost savings of approximately $6 million.
Shrink Management Solutions revenues decreased by $41.9 million, or 24.4%, in the second quarter of 2009 as compared to the second quarter of 2008. Foreign currency translation had a negative impact of approximately $10.3 million. The remaining revenue decrease was due primarily to declines in EAS systems, CheckView™, and EAS consumables of $18.1 million, $11.1 million, and $2.9 million, respectively. These declines were partially offset by a $2.2 million increase in our RFID business.
EAS systems revenues decreased by $18.1 million in the second quarter of 2009 as compared to the second quarter of 2008. The decrease was due primarily to declines in revenues of $10.4 million in Europe, $4.9 million in the U.S., and $2.4 million in Asia. The decline in Europe was due primarily to 2008 large chain-wide roll-outs in Spain, Italy, Poland, Belgium and France without comparable roll-outs in 2009. These declines were partially offset by a chain-wide roll-out in Germany in 2009. The decline in the U.S. was due primarily to large installations during the second quarter of 2008 without comparable roll-outs during 2009. The decline in Asia was due primarily to large chain-wide installations in Australia and New Zealand during 2008 without comparable roll-outs in 2009 offset, in part, by a large chain-wide roll-out in China. Our EAS systems business is dependent upon new store openings and the liquidity and financial condition of our customers which has been impacted by current economic trends. Our plan is to partially mitigate this issue by selling new solutions to existing customers and increasing our market share through innovative products such as Evolve™.
The CheckView™ business declined primarily due to decreases in the U.S., International Americas and Asia of $10.0 million, $0.7 million and $0.4 million, respectively. The decline in our U.S. retail business was $8.3 million, due primarily to an overall decline in capital expenditures as a result of the current weak economic conditions in the U.S. Our banking business declined $1.7 million due primarily to decreased customer spending as a result of the current economic condition in the financial services sector. We anticipate our U.S. CheckView™ business will continue to experience difficulties this year as constraints on capital spending by our customers and the slowing of new store openings will likely continue as a result of the current economic conditions. The decline in International Americas was primarily due to a decrease in our Canadian CheckView™ business, which experienced delays in customer capital expenditures. The decline in Asia was due primarily to large orders in Japan in 2008 without comparable installations in 2009.
During the second quarter of 2009, gross profit decreased by $20.3 million, or 20.7%, from $97.9 million to $77.7 million. The negative impact of foreign currency translation on gross profit was approximately $4.3 million. Gross profit, as a percentage of net revenues, increased from 41.5% to 42.7%.
Net earnings attributable to Checkpoint Systems, Inc. were $6.9 million, or $0.18 per diluted share, in the second quarter of 2009 compared to earnings of $14.4 million, or $0.36 per diluted share, in the second quarter of 2008. The weighted average number of shares used in the diluted earnings per share computation were 39.5 million and 40.3 million for the second quarters of 2009 and 2008, respectively.
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