warned after the close of regular trading Monday that its third- and fourth-quarter earnings won't meet expectations.
The company said it expects to earn 45 cents to 50 cents a share in the quarter, and 55 cents to 65 cents a share in the fourth quarter. Both ranges fall well short of the consensus of analysts polled by
First Call/Thomson Financial
, who expected the company to earn 60 cents a share in the third quarter and 80 cents a share in the fourth quarter. The company is expected to report on Oct. 23.
did on Thursday, Lexmark blamed a weak European currency for some of its difficulties. But Lexmark's problems clearly run deeper than recent fluctuations in foreign exchange markets.
"For much of the past two years, the company's inkjet cartridge supplies business had been in a backorder situation that was eliminated in the second quarter of this year," the company said in a press release. "Now that manufacturing capacity and supply are sufficient to meet the growing customer demand for inkjet cartridges, Lexmark is seeing a reduction in channel inventory levels around the world, resulting in lower orders than were forecast."
Lexmark investors aren't exactly unused to this sort of treatment. Back in July, while reporting its lower-than-expected second-quarter earnings, Lexmark
warned investors that weaker demand for its monochrome laser printers would weigh on its third quarter.