CLEVELAND - American Greetings Corp., the No. 2 U.S. greeting-card maker, said third-quarter earnings rose more than sevenfold as the company had lower costs after closing plants and firing workers last year.

Net income climbed to $47 million, or 62 cents a share, from $6.63 million, or 10 cents, a year earlier. Sales in the quarter that ended Nov. 30 increased 2.2 percent to $588.8 million.

Sales will remain "challenging" for the rest of the year, chief executive Morry Weiss said in a statement. Last year, American Greetings closed plants and eliminated jobs through firings and attrition. Selling, distribution and marketing expenses fell to 27.1 percent of sales from 30.7 percent a year earlier. Interest expense also fell last quarter.

Next year, the company will start selling to the 1,400 Albertson's Inc. stores it doesn't already, Weiss said on a conference call with analysts and investors.

Shares of American Greetings rose 37 cents to close at $16.51 yesterday on the New York Stock Exchange. They have risen 20 percent this year.

Analysts expected American Greetings to earn 61 cents a share. The company expects to earn $1.45 to $1.55 a share for the year, excluding a gain on the sale of an investment.

Closely held Hallmark Cards Inc. is the biggest U.S. greeting card maker.