It also set a new 2009 restructuring plan that will result in charges of $45 million and affect 375 jobs.

The company expects its fourth quarter revenue to decline about 17 percent. It had previously forecast a fourth-quarter drop in the low to mid-teens range.

It said revenue had been hurt by lower laser and inkjet hardware unit sales and currency rate shifts during the quarter.

Lexmark expects fourth quarter earnings to be 71 cents to 76 cents a share excluding restructuring charges. It previously expected 70 cents to 80 cents a share.

The company also said the recession would affect its first quarter results. It expects a revenue decline in the mid to high teens percentage range, and earnings per share of 65 cents to 75 cents excluding charges.

Analysts had expected a profit of 80 cents a share in period, according to Reuters Estimates.

(Reporting by Franklin Paul; Editing by Derek Caney)