Lexmark to lay off 1,600, as Q3 profits rise
Printer company Lexmark is laying of 1,600 workers - 12 per cent of its staff - in spite of seeing a Q3 profit rise.
It's cut its forecasts for the rest of 2001 and Paul Curlander, Lexmark's chief exec, said the cutbacks were necessary to maintain the company's cost competitiveness.
The company's HQ in Lexington and an assembly plant in Mexico will take most of the job hits - 600 apiece.
The job cuts will cost around $100-$120 million, to be accounted for in Q4, and produce savings of $50-$60 million, according to Lexmark.
The company earned $70 million for the quarter ended 30 September, up from $66 million in the same period a year earlier. Q3 sales rose to $1.0 billion, up 8 per cent on last year's $927 million. Net profit for the nine months were $237 million, up 4 per cent from $230 million for the same period last year. Sales for the nine months were $2.99 billion, up from $2.71 billion a year ago. ®