Net income fell 47.2% in its third quarter to $45.2m on revenue 3.2% lower at $1.19bn and the company looks set to drive sales even lower. It expects the problems to continue in the fourth quarter with forecasts of a fall in revenue in the low- to mid-single digit percentage range.
Lexmark’s problem is that loss-making printer sales in the consumer sector are essential to drive injet supplies. It said it now plans to shift its focus to higher-usage customers. This means putting its sales efforts into countries or geographic regions that have the highest supplies usage. It also hopes to cut costs by consolidating activity and expanding the use of shared service centers in lower-cost regions.
Lexmark is the tale of two markets. Its business segment revenue met expectations with a 5% growth to $728m while challenging conditions left consumer segment revenue down 13% at $468m.
CEO Paul Curlander said the company is committed to continuing strategic investments in new product development and branding to strengthen its position in growth market segments.
