LEXMARK QUARTERLY PROFIT FALLS

[Anonymous]

Lexmark quarterly profit falls
NEW
YORK, July 07 – Computer printer maker Lexmark International Inc. said
on Tuesday second-quarter net income fell on weak sales of ink
cartridges and higher sales of unprofitable inkjet printers.Lexington,
Kentucky-based Lexmark, which competes with Hewlett-Packard Co., posted
net income of $64.2 million, or 67 cents a share, down from $76.7
million, or 74 cents a share, a year earlier.Excluding a one-time
benefit from restructuring-related activities, the company earned 65
cents a share. On that basis, analysts were expecting 63 cents a share,
according to Reuters Estimates.

Second-quarter revenue was $1.21 billion, down 2 percent from $1.23 billion last year.
Analysts
had expected revenue of $1.20 billion.Lexmark on July 9 slashed its
second-quarter profit forecast, citing weak sales of inkjet replacement
cartridges and lower per-unit revenue from hardware, driven by
aggressive pricing, promotions and higher-than-expected product
costs.To bolster its bottom line, Lexmark has in the past year reduced
the number of lower-priced, unprofitable printers it sells. Printer
makers typically sell printers at a loss in hopes of reaping profits
from ink sales

[Author]

July 24, 2007 at 11:22 AM