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News Releases |
| Lexmark reports second quarter results | ||
| LEXINGTON, Ky. - 07/22/2008 | ||
Lexmark International, Inc. (NYSE: LXK) today announced financial results for the second quarter of 2008. Second-quarter revenue was $1.14 billion, down 6 percent compared to revenue of $1.21 billion last year. Second-quarter GAAP earnings per share were $0.89. Earnings per share for the second quarter of 2008 would have been $0.96 excluding $0.07 per share for restructuring-related activities. Second-quarter 2007 GAAP earnings per share were $0.67. Earnings per share for the second quarter of 2007 would have been $0.65 excluding $0.02 per share net benefit for restructuring-related activities. “During the second quarter we continued the strategic shift that we started in late 2007. EPS grew year to year in 2Q and we had good cash generation performance. Overall, we have more work to do to continue to implement our strategy and to drive growth in higher usage segments,” said Paul J. Curlander, Lexmark chairman and chief executive officer. “A key element is the introduction of industry-leading products and technology, which has enabled us to win some important large enterprise accounts recently and resulted in our new Professional Series and Home and Student Series inkjet products announced yesterday.” Second-quarter 2008 business segment revenue of $763 million grew 4 percent year to year. Consumer segment revenue of $376 million declined 21 percent compared to a year ago primarily due to the strategic changes announced last October and the slowdown in the inkjet market. Second-quarter 2008 gross profit margin was 36.6 percent, operating expense was $316 million, the operating income margin was 8.9 percent, operating income was $101 million and net earnings were $84 million. Second-quarter 2008 operating income includes $9 million pretax charges in connection with the company’s restructuring-related actions. Second-quarter 2007 gross profit margin was 30.6 percent, operating expense was $305 million, the operating income margin was 5.4 percent, operating income was $66 million, and net earnings were $64 million. Second-quarter 2007 operating income included $5 million restructuring-related pretax charges. On a non-GAAP basis, excluding restructuring-related charges, second-quarter 2008: • Gross profit margin would have been 37.0 percent, up 6.0 percentage points from 31.0 percent in the same period last year, principally due to a favorable product mix shift. The company ended the quarter with $1.328 billion in cash and current marketable securities. Second-quarter net cash provided by operating activities was $135 million. Capital expenditures for the quarter were $53 million. Depreciation and amortization in the quarter was $45 million. Lexmark repurchased $158 million (4.5 million shares) of stock during the second quarter. The company’s remaining share repurchase authorization was approximately $887 million at quarter end. Lexmark announced a plan today to enhance the efficiency of its inkjet cartridge manufacturing operations by further consolidating manufacturing capacity for the company’s inkjet supplies. This restructuring plan is for the closure of one of the company’s inkjet supplies manufacturing facilities in Mexico. This action is expected to impact approximately 650 positions by the end of 2008. Most of the impacted positions are being moved to a lower-cost country. The company estimates that this 2008 action will result in total pretax cost of approximately $24 million ($8 million cash cost), with an approximate $20 million impact in 2008. Pretax cost of $3 million impacted second-quarter 2008 results. Total savings from this restructuring are expected to be about $9 million annually beginning in 2009. Recent Win Demonstrates Strength of Lexmark’s Large Enterprise Value Proposition Significant Recent Industry Recognition for Lexmark’s Products Color laser and color laser MFPs Inkjet AIOs Mono Laser MFPs Print Management Software New Inkjets Expand Lexmark’s Reach into Higher-Usage Segments Looking Forward Conference Call Today Supplemental information slides, including reconciliations between GAAP and non-GAAP financial measures, will be available on Lexmark’s investor relations Web site prior to the live broadcast.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this release which are not historical facts are forward-looking and involve risks and uncertainties, including, but not limited to, weak economic conditions, aggressive pricing from competitors and resellers, inability to be successful in the higher-usage segments of the inkjet market, the financial failure or loss of business with a key customer or reseller including loss of retail shelf placements, disruptions at important points of exit and entry and distribution centers, market acceptance of new products and pricing programs, periodic variations affecting revenue and profitability, the inability to meet customer product requirements on a cost competitive basis, failure to execute planned cost reduction measures, entrance into the market of additional competitors focused on printing solutions, increased investment to support product development and marketing, inability to perform under managed print services contracts, decreased supplies consumption, increased competition in the aftermarket supplies business, failure to successfully outsource the infrastructure support of information technology systems, failure to manage inventory levels or production capacity, unforeseen cost impacts as a result of new legislation, changes in the company’s tax provisions or tax liabilities, fees on the company’s products or litigation costs required to protect the company’s rights, inability to obtain and protect the company’s intellectual property and defend against claims of infringement and/or anticompetitive conduct, reliance on international production facilities, manufacturing partners and certain key suppliers, changes in a country’s political or economic conditions, conflicts among sales channels, the failure of information technology systems, business disruptions, currency fluctuations, terrorist acts, acts of war or other political conflicts, or the outbreak of a communicable disease, and other risks described in the company’s Securities and Exchange Commission filings. The company undertakes no obligation to update any forward-looking statement. Lexmark and Lexmark with diamond design are trademarks of Lexmark International, Inc., registered in the U.S. and/or other countries. All other trademarks are the property of their respective owners. All prices, features, specifications and capabilities are subject to change without notice. 1ComputerBild Testsieger: Lexmark X9575 in ComputerBild Ausgabe 11/2008, Testergebnis: gut 2All prices are estimated street prices in U.S. dollars – actual prices may vary. 3802.11 b/g/n wireless network required for all wireless functions. Subject to the range and capabilities of your wireless router and access to electricity. |
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