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By Anne Steele – Lexmark International Inc. narrowed its loss in the final quarter of the year and earnings beat expectations, though revenue fell worse-than-expected as enterprise software growth and margin expansion were offset by the stronger dollar and the company’s exit from its inkjet printing business.
Lexmark also announced a restructuring program targeting increased profitability and operations in its imaging solutions and services segment by which 550 jobs–or about 4% of the workforce–will be eliminated in the next 12 months. The company said some of the positions are being moved to low-cost countries. The program, in response to foreign currency challenges and aligned with the continuing strategic alternatives process, will generate about $67 million in savings in 2016 and $100 million annually starting in 2017. Restructuring charges are expected to be $59 million in the year.
In October, the maker of printers, enterprise software and hardware said it is working with investment bank Goldman Sachs Group Inc. to explore strategic alternatives, including a possible sale, as its price share doesn’t fully reflect the value of the company. During the previous quarter’s earnings call with analysts and investors, the company said it would consider a spinoff of a portion of or a sale of the entire company.
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