LEXMARK: POSTS WEAK Q4 …. TO LAYOFF 375 EMPLOYEES

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LEXMARK: POSTS WEAK Q4 …. TO LAYOFF 375 EMPLOYEES

 user 2009-01-14 at 12:24:00 pm Views: 62
  • #21330
    http://online.wsj.com/article/SB123185524653077177.html?mod=googlenews_wsj
    Printer-Maker Lexmark Warns of Weak Quarter,  Will Cut 375 Jobs
    Printer
    maker Lexmark International Inc. projected fourth-quarter results below
    already weak expectations and said it would cut jobs as sales continue
    to weaken for the company.Including a 30-cent tax benefit, Lexmark
    projected earnings of 71 cents to 76 cents a share on revenue down 17%.
    The company in October predicted earnings excluding restructuring
    charges of 70 cents to 80 cents on a low- to midteen sales drop on a
    percentage basis. That forecast was below analysts’ expectations at
    that time.

    Lexmark has been restructuring in an effort to offset
    the drag from its consumer business, which has been a consistent
    underperformer and unable to compete in the low-cost market. Chief
    Executive Paul J. Curlander has said the company would be able to
    continue its strategy of improving focus and penetration in
    higher-usage segments despite difficult global economic conditions.

    Plans
    for 2009 include cutting 375 jobs, generating savings of $50 million a
    year, including $40 million this year. Restructuring charges for the
    fourth quarter will be higher than expected as the period will include
    some $20 million from the 2009 effort. The company has about 14,000
    employees.

    Lexmark also expects “some of the same factors that
    impacted the fourth quarter” to affect the first quarter. It sees
    revenue falling by the mid- to high-teens and earnings excluding
    restructuring charges of 65 cents to 75 cents a share. Analysts
    surveyed by Thomson Reuters projected a 10% revenue drop to $1.06
    billion and earnings of 73 cents a share.

    Lexmark recently
    introduced 38 laser printers and multifunction models designed for
    business use. The company expects the new printers to strengthen its
    position in the high-growth color laser and color laser multifunction
    printer segments