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Lexmark's second-quarter profit improves
Company to consolidate operations
July 22, 2008
Business First of Louisville
Computer printer manufacturer Lexmark International Inc. announced Tuesday that its second-quarter net income increased while revenue declined. Lexmark had second-quarter net income of $83.7 million, or 89 cents per share, compared with $64.2 million, or 68 cents per share a year earlier.
The company said earnings per share would have been 96 cents per share without a 7 cent-per-share charge for charge for restructuring-related activities.
Revenue declined to $1.1 billion from $1.2 billion in the second quarter of 2007. Analysts had predicted that Lexmark would report earnings per share of 78 cents on revenue of $1.1 billion.
Lexington-based Lexmark (NYSE: LXK) announced Tuesday that it will consolidate its inkjet supplies manufacturing operations.
The company will close a 650-employee plant in Mexico by the end of the year. Most of the production will be moved to a “lower-cost country,” but Lexmark did not disclose the location.
The move cost Lexmark about $24 million before taxes, with about 20 million of that cost coming this year. The company expects the move to save the company about $9 million a year beginning in 2009.
Lexmark also announced Tuesday that it has signed a five-year, “multimillion dollar” contract with Washington Mutual. Under the agreement Lexmark Global Services, a subsidiary of Lexmark Inc., will manage more than 25,000 printers in WaMu’s 2,300 financial centers and 37 back-office locations. Lexmark Global also will provide workflow process consulting services.
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