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 user 2009-01-14 at 12:23:23 pm Views: 60
  • #20951

    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