Lexmark tops estimates for third quarter
Published: 20 Oct 2003 15:10 BST
Lexmark handily beat analysts' estimates for its third-quarter profit as it rode stronger sales of both printers and printing supplies.
The printer manufacturer on Monday reported net earnings of $104m (£62m) and a profit of 79 cents per share on record revenue of $1.16bn for the third quarter.
Analysts had expected Lexmark to post a per-share profit of 69 cents and revenue of $1.10bn, according to First Call.
During the same period a year ago, Lexmark turned in net earnings of $90m and a per-share profit of 70 cents, including a 9 cent charge, on revenue of $1.04bn.
"Our third-quarter results reflect strong sales of both inkjet and laser printers which with their associated supplies drove overall revenue to record levels," Paul Curlander, Lexmark's chief executive, said in a statement.
It was the associated supplies that accounted for the greater share of the quarter's revenue, at $641m, compared with $430m for the printers themselves, and both segments rose 13 percent year over year, the company said. Inkjet sales played a major role in the increase, Lexmark executives said during a conference call to discuss the earnings report, even though high demand meant that some models were in short supply.
Lexmark did not mention any affects from Dell, which began selling Lexmark-built printers last March.
For the fourth quarter, Lexmark voiced caution because of price competition and the uncertain economy but predicted that its revenue would grow at a year-over-year rate of "mid- to high single digits" and that its per-share profit would be between 85 cents and 95 cents.
The company, which trimmed expenses in the third quarter, said that the fourth quarter would see an effort to expand its presence in the top echelons of the business printer market.
On Monday, Lexmark launched three high-end business-oriented printers, including a new colour laser machine and a pair of multifunction devices, which can fax, scan, copy and print documents. Multifunction, or all-in-one, printers are particularly popular with consumers purchasing at retail.
Lexmark's new C752 printer can turn out 20 pages per minute in black-and-white and in colour. It costs $1,999, the company said.
The company also unveiled a colour multifunction device, the Lexmark X752e, for printing documents, making copies, scanning and faxing. The heavy-duty machine, which can print up to 20 colour pages per minute, will sell for $7,699, the company said.
Lexmark's X912e colour multifunction device can print, copy and scan larger (11-by-17-inch) documents. The device, which can print or copy as many as 28 pages per minute, is priced at $11,499, the company said.
Lexmark also introduced the 5500 MFP Option, a kit that can convert the X912e's predecessors, the C912 or C910, to multifunction devices for $4,999.
The three printers and the conversion kit are available now, the company said.
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