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News Releases |
| Lexmark International reports third-quarter operating income growth of 31 percent | ||
| LEXINGTON, Ky., - 10/18/2004 | ||
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Investor Contact: John Morgan Lexmark International, Inc. (NYSE: LXK) today announced financial results for its third quarter ended Sept. 30, 2004. Third quarter revenue was $1.266 billion, an increase of 9 percent compared to $1.157 billion last year. Diluted net earnings per share for the quarter were $1.17 and include a non-recurring benefit of 15 cents per share from the resolution of income tax matters. Without this tax benefit, earnings per share would have been $1.02, an increase of 29 percent compared to a year ago. “Lexmark continued to perform well with 9 percent overall revenue growth and 31 percent operating income growth,” said Paul J. Curlander, Lexmark chairman and chief executive officer. “This was driven by double-digit unit growth in both our business and consumer segments, despite encountering weaker market conditions than we had anticipated.” Net cash provided by operating activities was $205 million in the third quarter. Capital expenditures for the quarter were $56 million. Lexmark repurchased 850,000 shares of its common stock during the quarter for $73 million. The company’s remaining share repurchase authorization was approximately $40 million as of Sept. 30, 2004. Lexmark announces powerful, easy-to-use new products The Lexmark P915 Home Photo Printer and the Lexmark P6250 Home Photo Center All-in-One both offer advanced yet simple photo printing using Lexmark’s new EvercolorTM inks and are priced at $149 and $199, respectively. The $179 Lexmark P315 Snapshot announced today is compact, portable and can create 4” x 6” prints in as little as 38 seconds. As part of Lexmark’s growth initiative to expand its presence in the small and medium business market, Lexmark announced in the third quarter a new business inkjet product and an additional laser product today. The Lexmark X7170 All-in-One priced at $249 offers small business owners simple faxing, scanning, printing and document copying, and with the new Lexmark Productivity Suite Software, an easy-to-use way to move information between the digital and paper worlds. The Lexmark T430 laser printer announced today is ideal for small and medium businesses and small workgroups in large enterprises requiring business-class paper handling and versatility. Affordably priced at $549, it offers the best price/performance in its class. As part of Lexmark’s growth initiative to expand its corporate solutions and services business, Lexmark today announced two new laser multifunction products. The Lexmark X830e priced at $11,999, and the Lexmark X832e priced at $13,999 offer the award winning, customizable e-Task touch screen user interface making common applications like scan-to-e-mail and scan-to-file as easy as making a copy. In addition to providing workgroup print, copy, scan, and fax capabilities, these products will serve as application platforms for improving paper-intensive workflow processes in large corporations. Nine-month financial results “Looking forward to the fourth quarter, we believe the strength of our product lineup and supplies-driven business model will keep us well-positioned for continued growth,” Curlander said. “Nevertheless, we continue to be cautious due to uncertainty in the market and the potential for aggressive price competition. In the fourth quarter of 2004, we expect a year-over-year revenue growth rate of mid- to high-single digits and earnings per share of $1.05 to $1.15 including the effect of the tax benefits and the projected increase in marketing expenses. This compares to earnings per share of $1.05 in the same quarter a year ago.”
Lexmark is hosting a conference call with securities analysts on Monday, Oct. 18, 2004 at 8:30 a.m. Eastern Time (888-338-6461). A live broadcast over the Internet and a complete replay of this call can be accessed from Lexmark’s investor relations Web site at http://investor.lexmark.com. Lexmark International, Inc. is a leading developer, manufacturer and supplier of printing solutions -- including laser and inkjet printers, multifunction products, associated supplies and services -- for offices and homes in more than 150 countries. Founded in 1991, Lexmark reported approximately $4.8 billion in revenue in 2003, and can be found on the Internet at www.lexmark.com. Lexmark and Lexmark with diamond design are trademarks of Lexmark International, Inc., registered in the U.S. and/or other countries. Evercolor is a trademark of Lexmark International, Inc. All other trademarks are property of their respective holders. "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, management of the company’s and resellers’ inventory levels, the impact of competitors’ products, aggressive pricing from competitors and resellers, market acceptance of new products and pricing programs, the ability and/or incremental expense to produce and deliver products to satisfy customer demand, changes in a country’s or region’s political or economic conditions, financial failure or loss of business with a key customer, reseller or supplier, currency fluctuations, production and supply difficulties including disruptions at important points of exit and entry and distribution centers, competition in aftermarket supplies, increased investment to support product development, unforeseen cost impacts, conflicts among sales channels, difficulties or delays in software and information systems implementations, the outcome of pending and future litigation or governmental proceedings, intellectual property and other legal claims and expenses, and other risks described in the company's Securities and Exchange Commission filings. The company undertakes no obligation to update any forward-looking statement.
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