STRATEGIC PARTNERS
February 17, 2002
LEXINGTON, Ky. - Challenged by a sluggish economy and heated competition from rival companies, computer printer manufacturer Lexmark International Inc. (NYSE:LXK) and its subsidiaries reported fiscal year 2001 net earnings of $273.6 million, down 4.1 percent from fiscal year 2000's net earnings of $285.4 million.
The company reported year-end revenue of $4.1 billion, up from $3.8 billion the previous year. But restructuring charges and increases in administrative and research and development expenses eroded that gain. An ongoing price battle with rival Hewlett-Packard Co. and a slowdown in personal computer sales also contributed to Lexmark's diminished returns.
"Clearly we are seeing a slowdown in the market," Paul Curlander, Lexmark chief executive officer, said during a conference call with analysts on Jan. 24 according to Reuters.
Lexmark expects the introduction of new printers and an emphasis on the business market to boost the company's fiscal outlook for 2002.
During the fourth quarter of 2001, ending Dec. 31, Lexmark reported net earnings of $36.8 million on revenue of $1.2 billion. However, the profit was created by a $41 million tax settlement in the company's favor.
