Thursday, January 15, 2009

Lexmark's value falls: a restructuring plan is in place

Lexmark announced that the weakening global economic environment impacted Lexmark’s fourth quarter 2008 operating performance, which will be lower than expected.

The company’s earnings per share for the quarter have been impacted by several factors including:
• The company’s operating income, which was negatively impacted by significant currency rate shifts during the quarter.
• A tax benefit approximately offsetting in EPS the effect of the currency rate shifts.
• Increased restructuring related charges primarily due to the 2009 Restructuring Plan, which the company announced on January 14.

The 2009 Restructuring Plan is expected to impact about 375 positions. Lexmark expects the 2009 Restructuring Plan to be substantially completed by the end of 2009 and currently expects total annualized cost savings of $50 million when completed, with approximately $40 million in savings in 2009.

Source: lexmark.com

Key words: Lexmark, economic crisis, job cuts, restructuring

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