Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Lexmark shares plunge as CEO departs

chart_ws_stock_lexmarkinternationalinc.top.PNG By Laurie Segall, CNN


NEW YORK (CNNMoney) -- Shares of Lexmark plunged 21% Tuesday, after the printer maker announced the departure of its longtime CEO and reported third-quarter financial results that fell short of analysts' expectations.

The printing manufacturer had revenue of $1.02 billion, up 6% from last year but shy of analysts' $1.04 billion estimate. The quarter's net income of $72 million rose sharply compared to last year, but a weak forecast for slow growth in the current quarter sent investors fleeing. Lexmark's stock had the biggest drop of any S&P 500 company in Tuesday trading.

CEO Paul Curlander, 57, announced plans to retire in early 2011 after 12 years at the Lexington, Ky., printer company. Curlander will be succeeded by Paul Rooke, another longtime Lexmark vet who has helmed the company's Imagining and Solutions Division since 2007.

Lexmark (LXK) is a mainstay in the printing field, but it trails market leader Hewlett-Packard (HPQ, Fortune 500) and faces persistent pressure about its one-trick business model. The company is frequently touted as a good buyout candidate, particularly for private-equity firms. Its current market capitalization, of $3 billion, sits below the $3.9 billion it generated in sales last year.  To top of page

Search for Jobs

Index Last Change % Change
Dow 18,400.88 -53.42 -0.29%
Nasdaq 5,213.22 -9.77 -0.19%
S&P 500 2,170.95 -5.17 -0.24%
Treasuries 1.57 -0.00 -0.13%
Data as of 6:08pm ET
Company Price Change % Change
Bank of America Corp... 16.14 0.03 0.16%
EMC Corp 28.99 0.00 0.00%
Chesapeake Energy Co... 6.35 -0.16 -2.46%
General Electric Co 31.24 -0.13 -0.41%
Freeport-McMoRan Inc... 10.29 -0.27 -2.56%
Data as of 4:02pm ET

Sections

Martin Shkreli, the reviled drug company CEO who faces federal criminal charges, nearly doubled his $3 million investment in KaloBios. More

Brazil's economy contracted 3.8% in the second quarter. The economic news came hours before Brazil's senate impeached President Dilma Rousseff. More

Instagram introduced a zoom functionality on Wednesday to iOS users. It'll roll out to Android users in the coming weeks. More

The country's most expensive housing markets have appreciated at a much faster clip than homes in the least expensive markets, according to Trulia. More