Lexmark Reports Lower Sales, Higher Q2 Income

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Lexington, Ky. — Lexmark reported lower sales and higher operating income for its second quarter, which ended June 30.

Second-quarter revenue was $1.14 billion, down 6 percent compared with revenue of $1.21 billion last year.

Second-quarter GAAP operating income was $101 million, up from $66 million in the previous year’s first quarter.

Second-quarter 2008 consumer segment revenue of $376 million declined 21 percent, compared with a year ago, primarily due to the strategic changes announced last October and the slowdown in the inkjet market.

Second-quarter GAAP operating income was $23 million, up from $14 million in the previous year’s second quarter.

Of its total business, 33 percent of its sales come from the consumer business and 38 percent of its sales are from the United States.

Lexmark announced a plan today to further consolidate its inkjet cartridge manufacturing operations manufacturing capacity for inkjet supplies. This restructuring plan is for the closure of one of the company’s inkjet supplies manufacturing facilities in Mexico. This action is expected to impact approximately 650 positions by the end of 2008.

Total savings from this restructuring are expected to be about $9 million annually beginning in 2009.

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