Lexmark Cutting 625 Jobs

(REUTERS) -- Printer maker Lexmark International Inc. said it is slashing 625 jobs globally as part of a restructuring plan and forecast weaker sales and earnings in the current quarter.

The company also reported lower fourth-quarter results on Tuesday, but adjusted earnings topped expectations.

Lexmark has been phasing out printers targeted at the consumer market in recent years and is now focused on selling to corporate clients that print more pages and consume more supplies such as ink and toner.

Most of the job losses are related to this shift and affect workers who manufacture consumer supplies, Chief Executive Paul Rooke said in an interview. He said the majority of the cuts would be overseas but an undisclosed number would be in the United States.

The company had about 13,200 employees globally, including 3,900 in the United States, at the end of 2010, according to its last annual report.

The restructuring will help Lexmark save $15 million in cash this year, and the company expects ongoing cash savings of $28 million starting in 2013.

For the current quarter, the company expects revenue to decline 4 percent to 6 percent from a year earlier. It expects adjusted earnings of 98 cents to $1.08 per share. Analysts' average earnings estimate is $1.13 per share, according to Thomson Reuters I/B/E/S.

Fourth-quarter net income fell to $69.3 million, or 94 cents per share, from $87.6 million, or $1.10 per share, a year earlier.

Adjusted for restructuring and acquisition costs, it earned $1.25 per share, beating the average Wall Street forecast of $1.16.

Revenue was $1.06 billion, down 4 percent.

Lexmark shares were down $1.43 to $33.38 in morning trade on the New York Stock Exchange.

(Reporting by Liana B. Baker; Editing by Lisa Von Ahn)