September 13, 2012

Lexmark Exiting The Printing Business

On August 28, 2012, Lexmark announced restructuring actions which included the exiting of the development and manufacturing of the company's remaining inkjet hardware. Overall, the total pre-tax cost of eliminating the division is likely to be $160 million through 2015, Lexmark said. Despite this decision, Lexmark will continue to provide service, support and aftermarket supplies for its inkjet installed base.

"Today's announcement represents difficult decisions, which are necessary to drive improved profitability and significant savings," said Paul Rooke, Lexmark chairman and chief executive officer. "Our investments are focused on higher value imaging and software solutions, and we believe the synergies between imaging and the emerging software elements of our business will continue to drive growth across the organization.

By the end of 2012, Grasso said, Lexmark expects to employ about 2,300 people in Lexington (Lexmark's main facilities in the US), down from about 3,000 before the cuts. An additional 1,100-plus employees worldwide also will be affected, with a plant in the Philippines closing by 2015. The company is attempting to sell the inkjet division and its approximately 1,000 patents.

"So we think we're in good shape," Grasso said. "Technology evolves. There just wasn't the return on investment that we needed. We think inkjet is still viable, just not for us."

Edited by Limewit Tech Blog
Source Lexmark and Businessweek
Photos courtesy of Lexmark

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...