Lexmark's sales, profit drop for year

The results, released Tuesday morning, come as the Lexington-based company continues to feel the pains of switching its inkjet business to focus on businesses rather than consumers.

To that end, the company announced a restructuring program that will generate cash savings of about $15 million in 2012 and expected annual savings of $28 million beginning in 2013, according to the company. The company did not disclose what impact the actions would have on its head count overall or at its corporate headquarters in Lexington.

In the fourth quarter, the company’s revenue fell to $1.06 billion from $1.1 billion in the same period of 2010. Earnings were $69.3 million, or 94 cents per share. Earnings per share would have been $1.25 except for a number of one-time charges. In 2010, earnings were $87.6 million, or $1.10 a share. They would have been $1.29 except for one-time charges.

Driving the declines were a 9 percent drop in sales of printers and 3 percent drop in sales of supplies such as ink and toner.

The company was scheduled to hold a conference call at 8:30 a.m. Tuesday to discuss the announcements.

For presentation purposes, Lexmark has divided its business into what it calls "core" products, which it will continue to market, and "legacy" devices that are directed at consumers and are being phased out in favor of higher-end business-focused printers.

Using the comparison, the company said sales of core products were up 2 percent in the fourth quarter while legacy products saw a decline in sales of 38 percent.

For the year, the company’s revenue was $4.173 billion, down 1 percent from 2010. Earnings were $320.9 million, or $4.12 per share. Earnings per share would have been $4.71 except for a number of one-time charges. In 2010, earnings were $340 million, or $4.28 a share. They would have been $4.96 except for one-time charges.

Among the highlights was record laser toner sales, which were 9 percent above the previous high mark set in 2010, according to the company. The company said revenues from core products grew 7 percent in 2011 compared to 2010, while legacy equipment saw sales drop 35 percent year over year.