Lexmark Q3 Crushes Ests; Cutting 825 Jobs

Lexmark (LXK) this morning posted better-than-expected Q3 results.

For the quarter, the printer company posted revenue of $958 million and non-GAAP profits of 65 cents a share, well ahead of the Street at $901.3 million and 45 cents.

For Q4, Lexmark sees non-GAAP EPS of 50-60 cents, above the consensus at 47 cents.

The company also said it will cut 825 jobs as part of a new restructuring program intended to streamline the organization “to improve operating efficiencies and effectiveness. The job cuts are in manufacturing, supply chain, service delivery overhead, marketing and sales support, corporate overhead and development. The plan will be completed by Q1 2011. The job cuts will result in $120 million in pre-tax charges, including $33 million incurred in Q3. The company said the plan to generate savings of $70 million in 2010 and $110 million annually starting in 2011.

LXK this morning is up $2.08, or 9.2%, to $24.65.