Lexmark has announced that it will be eliminating 550 jobs worldwide over the next 12 months and shifting some positions to low-cost countries as part of a restructuring plan for 2016. The restructuring is aimed at saving the company $67 million in 2016 and $100 million annually in pretax savings starting in 2017.
The company also announced its fourth-quarter results, with total revenue of $969 million as compared to $1.023 billion in its fourth quarter of 2014. Earnings per share rose slightly to $1.16 from $1.14 during the same period last year. The company reported a gross profit margin of 39.8 percent, as compared to 35.2 percent for the same quarter in 2014.
The company reported a 13 percent decline (10 percent decline at constant currency) in revenue for its Imaging Solutions and Services segment, but a 75 percent growth (83 percent growth at constant currency) in revenue for its Enterprise Software division. Lexmark’s Higher Value Solutions revenue also rose by 19 percent (26 percent growth at constant currency).
"Lexmark had a good fourth quarter. We more than doubled fourth quarter Enterprise Software non-GAAP operating income margin year to year to 24 percent, and delivered full year MPS revenue growth for the 16th consecutive year," said Paul Rooke, Lexmark chairman and chief executive officer, in a release announcing the fourth quarter results. "Our Higher Value Solutions now comprise more than 40 percent of Core revenue and grew 26 percent in constant currency.”