Lexmark To Cut More Jobs As Profit Drops

LEXINGTON, Ky. (AP) — Lexmark International Inc. said Tuesday it will cut an additional 825 jobs this month as it reported that restructuring costs drove down third-quarter profits despite improving demand.

The printer and copier maker said it plans to primarily cut jobs in manufacturing, supply chain, service delivery, marketing and sales support, corporate and development. It expects to save $70 million next year and another $110 million beginning in 2011.

The company said it will take about $120 million in pretax charges for severance and other expenses, with about $33 million of that incurrred in the third quarter. Lexmark has more than 13,000 employees worldwide.

For the period ended Sept. 30, Lexmark reported earnings of $10 million, or 13 cents per share, down 73 percent from $36.6 million, or 42 cents per share, a year earlier.

Excluding restructuring charges, the company said it would have earned 65 cents per share. On that basis, analysts polled by Thomson Reuters were expecting a profit of 45 cents per share.

Sales dropped 15 percent to $958 million. Analysts were expecting $901.3 million.

Lexmark predicted a fourth-quarter profit of 11 cents to 21 cents per share. Excluding charges of 39 cents per share, the company expects a profit of 50 cents to 60 cents per share.

Shares of Lexmark advanced $2.08, or 9.2 percent, to $24.65 in premarket trading.