Oct. 20--Lexington-based printermaker Lexmark International announced Tuesday that it plans to cut 825 jobs worldwide through 2011 in an effort to deal with the challenging economy.

The cuts will be focused primarily on the company's manufacturing, which is done overseas, in a bid to improve its supply chain. Other affected areas include service delivery overhead, marketing and sales support, corporate overhead and development.

While some of the 825 jobs affected will be in Lexington, the company said it has been hiring in other areas and will continue to employ around 3,000 workers at the headquarters here. The cuts are not expected to be complete until the first quarter of 2011.

And while third-quarter revenue fell 15 percent compared to a year ago, Lexmark had a number of positives in the quarter. Revenue grew 6 percent compared to the second quarter. During three of the last four years, revenue has fallen between those quarters.

"Stronger than expected customer demand drove good sequential growth for Lexmark, exceeding our expectations in the third quarter," CEO Paul Curlander said in a statement.

Earnings per share were 13 cents in the quarter compared to 42 cents in the third quarter of 2008. Factoring out restructuring costs in each quarter, though, earnings were up from 63 cents a share to 65 cents a share.

The restructuring announced Tuesday is expected to cost $120 million total with $33 million of the total cost reflected in the third quarter results. Savings from the cuts are estimated at $70 million in 2010 and $110 million annually beginning in 2011.

Looking ahead, the company said it expects revenue to be "up slightly" in the fourth quarter compared to the third quarter. It predicted earnings per share of 11 cents to 21 cents. Factoring out restructuring charges, earnings are expected to be between 50 cents to 60 cents a share. That's above the 47 cents a share estimated by analysts before Tuesday's earnings announcement.

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

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