Lexmark International Inc., which provides printing services to businesses, said Tuesday it will cut 360 jobs and close one factory, as first-quarter income fell 42 percent on weak demand.
Lexmark said the job cuts will occur across its global work force, with 270 coming from the closure of an inkjet cartridge factory in Juarez, Mexico. The facility will be closed by 2010, the company said.
It said the cuts will result in charges of about $50 million and will be complete by the first quarter of 2010. It expects $5 million in savings this year and $20 million in savings in 2010.
Lexmark said earnings for the three months ended March 31 fell to $59.2 million, or 75 cents per share, from $101.7 million, or $1.07 per share, in the same quarter last year. Excluding restructuring charges, the company earned 89 cents per share.
Revenue fell 20 percent to $944.1 million from $1.18 billion a year ago.
Analysts surveyed by Thomson Reuters expected 60 cents per share on $970.7 million in revenue, on average. Such estimates typically exclude one-time items.
"Market conditions continue to negatively impact both Lexmark and the overall distributed printing market," said Paul J. Curlander, chief executive, in a statement.
Lexmark also said it expects to report a decline in its second-quarter profit, though it guided for results in line with analyst estimate.
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