February 2, 2010 - Lexmark International has announced fourth-quarter revenue of $1.07 billion, a 12% increase versus third-quarter 2009, and a decline of 1% versus fourth-quarter 2008.
However, net earnings for fourth-quarter 2009 were $60 million (76 cents per share), up 230 percent versus fourth-quarter 2008. Lexmark cites cost-cutting and stronger customer demand, with Lexmark Chairman and CEO Paul J. Curlander noting, "Lexmark’s fourth quarter results were significantly better than anticipated, reflecting strong sequential improvements in customer demand, which were enhanced by the strength of the new products we introduced over the past year. During the quarter, we continued to strengthen our business model through the implementation of our restructuring and expense reductions, which delivered over $200 million of expense savings in 2009. These actions, along with the increased customer demand, helped us to deliver strong sequential and year-over-year improvements in operating income and cash flow. Our ongoing financial position remains strong with over $1.1 billion in cash and current marketable securities."
In the fourth quarter, the company's Printing Solutions and Services Division reported revenue of $748 million, an increase of 14% versus third-quarter 2009, and a 4% increase versus 2008's fourth quarter. The company's Imaging Solutions Division reported revenue of $325 million, an increase of 7% versus third-quarter 2009, but a decrease of 11% compared to fourth-quarter 2008.
Full-year Results
Full-year 2009 revenue was $3.88 billion, down 14% compared to fully-year 2008. For full-year 2009, Printing Solutions and Services Division revenue declined 12% to $2.62 billion, and Imaging Solutions Division revenue declined 19% to $1.26 billion.
2009 net cash provided by operating activities was $402 million, marking the company’s 17th consecutive year of positive cash generation and 8th consecutive year of over $400 million. Capital expenditures for the year were $242 million. Depreciation and amortization for the year was $214 million.
New Product Lines' Impact
Lexmark says its new laser imaging systems introduced over the last 15 months represent the "most extensive series of laser product introductions in the company’s history," and will help it to better capture profitable aftermarket consumables' revenues. It also says its 2009 ink-jet product introductions, many of which feature more office-oriented functionality, are helping it attract more business-oriented customers that tend to have higher page volumes versus consumer ink-jet users.
2010 Forecast
For 2010's first quarter, Lexmark currently expects revenue "to be up slightly" versus 2009, and expects GAAP earnings per share to be around $0.64 to $0.74, based on an effective tax rate of 24 percent, or $0.80 to $0.90, excluding $0.16 per share for restructuring-related charges. GAAP earnings per share in the first quarter of 2009 were $0.75 with an effective tax rate of 16%, or $0.89 excluding $0.14 per share for restructuring-related activities.
For further information, visit http://www1.lexmark.com/content/en_us/about_us/newsroom/news_releases/4q_2009_year_results.shtml.