Lexmark Fourth Quarter Sales Down Amid Restructuring
LEXINGTON, Ky. -Lexmark is touting better-than-expected revenue numbers for the fourth quarter, but earnings continue to suffer.
The company embarked on a major restructuring plan that included job cuts that affected close to 13 percent of the company’s workforce last August. The plan, which will eventually result in about 1,700 layoffs worldwide and the total dissolution of Lexmark’s inkjet printer division, is expected to result in $93 million dollars in annual savings by 2015.
In the meantime, however, the manufacturing company is seeing tax issues and the decision to end inkjet pull its sales down. Fourth-quarter sales dipped 9 percent compared to a year ago. Net income fell to $6.3 million, or 10 cents a share, down from 94 cents a share in the same time period.
Most of Lexmark’s shift away from inkjet printers is expected to be complete by the end of 2013, as the company hopes to raise the profile of its software offerings.