Lexington, KY - Shareholders of Lexington-based printer company Lexmark earned $1.20 per share as a result of first quarter revenue of $1.04 billion. While up 10 percent from the same period in 2009, Lexmark revenue fell 3 percent from fourth quarter 2009 earnings.
With an operating expense of $251 million for the quarter, Lexmark earnings were shaved 15 cents per share for restructuring charges and project costs. In the same quarter last year, those charges totaled 14 cents per share for an adjusted earnings of 75 cents per share.
"Lexmark's first quarter results were significantly better than expected, reflecting strong customer demand for our hardware and supplies products," Lexmark Chairman and CEO Paul J. Curlander said in a statement released by the company.
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In an interview with , Lexmark CFO John Gamble said the work that has been done over the past few years to shift out of the consumer market and focus on higher-end, high-use printing has paid off.
"Our market position is so much stronger given our much stronger product line and our very strong managed print services business and capabilities," Gamble said. "Over the same time in the past several years, we've done a lot of work to reduce our overall cost structure, to reduce our fixed cost structure and consolidate our manufacturing footprint."
The company saw a gross profit margin of 36.9 percent this quarter versus 35.3 percent in '09, while operating expense to revenue ratio was 24.1 percent, compared to 27.4 percent last year. Net earnings for the quarter were $95 million, an increase of 61 percent compared to first quarter 2009 net earnings of $59 million.