LEXINGTON, Ky. (AP) — Lexmark International Inc. said Tuesday its third-quarter profit slipped on a restructuring-related charge and lower consumer market segment sales, leading the company to announce a plant closure and 1,650 job cuts.
The printer maker reported earnings slid to $45.2 million, or 48 cents per share, compared with $85.6 million, or 85 cents per share, a year ago.
Excluding a charge of 12 cents per share for restructuring-related activities, net income for the current period would have been $57 million, or 60 cents per share.
Revenue for the quarter dipped 2 percent to $1.2 billion from $1.23 billion in the previous year.
Lexmark said it will shift its consumer segment focus to higher-usage customers, improve cost control efforts and close one of its inkjet supplies plants in Mexico. The steps are expected to impact about 1,650 positions by the end of 2008, with most jobs being moved to lower-cost countries, according to the company.
Lexmark expects the actions to result in about $20 million in costs this year, and $70 million in costs in 2008. Total savings are anticipated at approximately $40 million next year and about $60 million annually once the actions are completed.