Jul. 21--Lexington-based Lexmark International announced Tuesday that its second-quarter profit fell 80 percent year-over-year as the company's results were affected by a plant closing and work-force restructurings announced earlier this year.

Earnings per share for the quarter were 22 cents. Without the restructuring charges, earnings would have been 55 cents a share.

Chief executive Paul Curlander told analysts during a Tuesday-morning conference call that the company's results "are clearly not where we'd like them to be," but that the global recession has dragged down demand for its printers, ink and toner.

For the second quarter, revenue was down 21 percent, to $905 million from $1.14 billion in the same period a year ago.

The results were below the expectations of analysts, who forecasted 60 cents a share excluding restructuring charges. Shares of the company's stock (NYSE:LXK) fell 7.4 percent in pre-market trading.

The most recent quarter's restructuring charges stem from the company's announcements in January and April that it would close its last inkjet cartridge manufacturing plant, in Juarez, Mexico, eliminating 270 jobs, and restructure 340 other jobs, moving some to lower-cost countries and eliminating others.

The company's lucrative supplies business of selling ink and toner saw revenue fall 18 percent in the second quarter, as price increases were offset by lower demand for the products and the negative impact of weakening foreign currencies.

The company's two divisions also saw weakened results. Its laser division saw revenue fall 18 percent to $624 million, with hardware revenue dropping 27 percent because of lower unit volume, weakening foreign currencies and price declines. Unit shipments fell 21 percent primarily because of market weakness.

The inkjet division, which has struggled in recent years as it changes to focus more on business-class printers, saw revenue fall 25 percent to $281 million. Hardware revenue fell 36 percent, driven by factors including a 43 percent decline in unit shipments.

The company predicts that revenue will be down slightly in the third quarter compared to this past quarter. It anticipates earnings per share will be 22 cents to 32 cents, including 18 cents a share in restructuring charges.

Reach Scott Sloan at (859) 231-1447 or 1-800-950-6397, Ext. 1447.

-----

To see more of the Lexington Herald-Leader, or to subscribe to the newspaper, go to http://www.kentucky.com.

Copyright (c) 2009, The Lexington Herald-Leader, Ky.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:LXK,

A service of YellowBrix, Inc.