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LEXMARK TO REPURCHASE $250M IN SHARES BY END OF 2011
Lexmark International Inc. (LXK) disclosed it resumed a stock repurchase program authorized by the company’s board over three years ago, and plans to repurchase $250 million of outstanding shares by the end of the year.
Chairman and Chief Executive Paul Rooke said the company’s balance sheet and cash flow remains strong, giving the printer company the flexibility to invest in acquisitions while also return some excess cash to shareholders. It joined a number of companies that have taken such measures to appeal to investors.
Late last month, the company signed an initial accelerated share repurchase agreement worth $125 million. Following that transaction, Lexmark has about $366 million of share repurchase authority remaining under a program that has no expiration date.
The company has a market capitalization of about $2.6 billion.
Lexmark has been benefiting from businesses spending more on technology upgrades after delaying those purchases during the recession. Last week, the company reported its second-quarter profit jumped 19% as gross margin jumped due to lower costs and revenue slightly increased.Shares were up 0.7% to $32.80 after hours.
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