LEXMARK: POSTS WEAK Q4 …. TO LAYOFF 375 EMPLOYEES

[Anonymous]

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

[Author]

January 14, 2009 at 12:24 PM