Lexmark To Cut 625 Jobs As Earnings Slump

Most of the jobs are in Lexmark's inkjet cartridge factories overseas, and the cuts will help the company shave $15 million in costs this year.

LEXINGTON, Ky. (AP) — Printer maker Lexmark International Inc. on Tuesday said it would cut 625 jobs, mostly overseas, as it deals with shrinking sales of inkjets.

Most of the jobs are in Lexmark's inkjet cartridge factories, according to Lexmark spokesman Jerry Grasso.

The job cuts are part of a plan to shave off $15 million in costs this year, resulting in pre-tax charges of $35 million.

The Lexington, Ky., company reported net income of $69.3 million, or 94 cents per share, in the three months that ended on Dec. 31. That was down 21 percent down from $87.6 million, or $1.10 cents per share, in the same period a year earlier.

Excluding restructuring and acquisition-related charges, Lexmark earned $1.25 cents per share in the latest quarter, down from adjusted earnings of $1.29 per share.

Revenue fell 4 percent to $1.060 billion from $1.104 billion.

Analysts, on average, expected adjusted earnings of $1.16 per share on revenue of $1.058 billion, according to a poll by FactSet.

Lexmark's stock fell 57 cents, or 1.6 percent, to $34.24 in midday trading.

The company is forecasting first-quarter earnings of 98 cents to $1.08 per share, excluding items. That compares with analyst expectations of $1.17 per share.

Lexmark expects revenue to decline by 4 percent to 6 percent from last year's results, yielding a range of $972 million to $993 million. Analysts had been expecting revenue of $979 million.

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