Lexmark has seen its profits drop as a result of an erosion of printer sales and profit margins during its first quarter.
The response from the printer manufacturer has been to announce the closure of a Mexican inkjet cartridge plant which will see 270 jobs axed as it moves to cut costs.
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There will be further trimming of staff with 90 staff also being impacted by restructuring that was announced earlier this month.
For the first quarter net income dropped to $59.2m from $101.7m compared to the same period last year. Revenue also dropped by 20% to $944.1m.
"Market conditions continue to negatively impact both Lexmark and the overall distributed printing market," said Paul Curlander, Lexmark chairman and CEO.
The vendor added that it expected the decline shown in its Q1 numbers to continue into Q2 as the global economic downturn continued.Lexmark had already come into Q1 on the back of a poor performance in the fourth quarter.
During the calendar fourth quarter the printer giant saw profits drop 82% to $18.1m as revenues went down 17% to $1.08bn. Operating income included a $47m pre-tax restructuring charge.
Revenues in the business segment fell 10% to $718m while sales in the consumer segment fell more sharply at 28% to $366m.
Full-year results included a 9% decline in revenues to $4.53bn as profit fell from $300m a year earlier to $240m.