*NEWS*LEXMARK EXECS ANSWER QUESTIONS…..

  • ink-direct-banner-902-x-177-v-1-2-big-banner-03-23-2017
  • 2toner1-2
  • 4toner4
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 161213_banner_futorag_902x177px
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • banner-01-26-17b
  • futor_902x177v7-tonernew
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • Print
Share

*NEWS*LEXMARK EXECS ANSWER QUESTIONS…..

 user 2005-11-23 at 10:37:00 am Views: 60
  • #13082

    Lexmark execs answer analysts’ questions
    Lexmark
    International hosted its annual Analyst Day yesterday, attracting about
    75 to a day of speeches by executives who emphasized the company’s
    strong past performance but reiterated that it has more work to do
    .
    In
    the afternoon, analysts peppered an assembled group of executives with
    questions, many regarding the company’s recent quarter, in which its
    earnings were 59 cents per share, down from initial estimates of 95
    cents to $1.05. Here are some highlights:
    Executives said Lexmark
    currently has relatively weak shares in some of the industry’s
    fastest-growing segments, such as color lasers and photo all-in-one
    units.
    CEO Paul Curlander: “We need to get into these growth
    segments with a better penetration … What you saw is that in the key
    growth segments, we don’t have the kind of penetration or market share
    that we need. And so we’re kind of out of alignment of where the growth
    is going on in the market right now. This is a problem, so we need to
    work on it. That’s why we’re focused on doing investments.”
    One analyst asked how soon Lexmark’s product offerings would be where executives desired.
    Curlander:
    “It is very hard to put a time frame on it. But I wouldn’t want to
    mislead you to think it’s a one-year type of thing. We think this is
    going to be a multiple year (progression).”
    Several analysts asked
    about Lexmark’s relationship with Dell, for whom it is one of four
    companies that produce printers that are sold under Dell’s name. Dell
    constituted more than 10 percent of Lexmark’s revenues in 2004. One
    analyst asked what the effect would be if Dell relied more on its other
    suppliers.
    Curlander: “We look at OEM (original-equipment
    manufacturer) as an incremental opportunity. We do it if it makes
    business sense … If it were just cannibalizing what we otherwise
    would get, we wouldn’t do it … It lasts as long as it lasts.”
    Analysts also asked about the threat posed by companies that sell replacement ink cartridges for the company’s products.
    Consumer
    Printer Division President Najib Bahous: (Remanufactured) ink
    cartridges have existed … everywhere around the world. … We measure
    it, we understand it, and we basically contain it … We haven’t seen
    it increase significantly, but it’s there.”