Lexmark International today announced record financial results for its fourth quarter and full year ended 31 December 2004. Fourth quarter revenue was $1.544 billion, an increase of 13% compared to $1.370 billion last year.
Laser and inkjet printer revenue increased 16% year over year and revenue from laser and inkjet supplies was up 13%. Diluted net earnings per share for the quarter were $1.18, up 12% compared to $1.05 in the same quarter last year.
Says Paul J Curlander, Lexmark chairman and CEO: "We are pleased to deliver record revenue and earnings that exceeded our expectations for the fourth quarter. This was a very good quarter for Lexmark. We achieved double-digit revenue growth in both hardware and supplies. Most importantly, we continued disciplined investment in our core strategic development and marketing initiatives to drive future growth, and delivered a 28% year-to-year increase in EPS for the full year."
Gross profit margin was 32% for the quarter versus 31.9% a year ago. An increase in the mix of printers was offset by improved product margins. Operating expenses, which included an approximate $15 million increase in advertising, were $297 million compared with $249 million in the prior year. Operating income was a record $197 million, up from $188 million last year.
Net cash provided by operating activities was $284 million in the fourth quarter. Capital expenditures for the quarter were $79 million. Lexmark repurchased 1 620 000 shares of its common stock during the quarter for $139 million. The company`s remaining share repurchase authorisation was approximately $901 million at year-end.
Full-year financial results
Revenue for the 12 months ended 31 December 2004 was $5.314 billion, an increase of 12% versus $4.755 billion in the same period of 2003. Gross profit margin was 33.7%, up 1.2 points from the prior year. Operating income was $732 million versus $594 million a year earlier, an increase of 23%.
Net earnings per share on a diluted basis increased 28% in 2004 to $4.28. Net cash provided by operating activities for the year was $775 million. Full-year capital expenditures were $198 million. The company repurchased 3 220 000 shares in 2004 for $281 million.
Looking forward
In the first quarter of 2005, the company expects a year-over-year revenue growth rate of mid- to high-single digits and earnings per share of $0.95 to $1.05. This compares to earnings per share of $0.91 in the same quarter a year ago. The company believes the strength of its product line and its supplies-driven business model will keep it well positioned for continued growth; however, uncertainty in the economy and the potential for aggressive price competition continue.
For further information, please contact Louisa Craig at telephone (011) 329 0943; fax (011) 329 0824; e-mail louisa.craig@lexmark.co.za.
Share
Lexmark International, Inc is a leading developer, manufacturer and supplier of printing solutions -- including laser and inkjet printers, multifunction products, associated supplies and services - for offices and homes in more than 150 countries. Founded in 1991, Lexmark reported approximately $4.8 billion in revenue in 2003, and can be found on the Internet at www.lexmark.com.
Editorial contacts