LXK reduced its Q4 earnings forecast and announced it would cut 400 jobs. A 17% decline in revenue is expected from its year-ago December 2007, thanks to reduced printer sales and unfavorable currency exchange rates.
Lexmark reported a 16% profit loss for the 2nd quarter (ended June) of 2007. Losses were attributed to losses in the consumer segment (inkjet printers) by 8% Y/Y and lower sales of inkjet supplies. Yet laser printer sales in the business segment rose 3%.
Lexmark reports 1st quarter earnings that were lower than analyst expectations of 1.03 EPS. Last year’s first quarter EPS was $0.78, including a &0.31 loss per share for restructuring-related costs; this year’s earnings were $0.95 and reflected lower inkjet cartridge sales and intense pricing pressures.
Late 2006 (3rd quarter) Lexmark spent large amounts on advertising its brand.