14 DAY TRIAL // Printer producer and vendor Lexmark International just announced its second quarter profits for this year and it looks as if they declined no less than 16 percent on the lower consumer market segment, partly because of lower sales and partly because of higher costs.
Even so, Lexmark still managed to top Wall Street's financial forecasts. Because of internal revenues projections that were considerably lower than the last year's, the company was expecting to have a smaller income than the one expected by external analysts.
"Although we had a shortfall in our consumer market segment relative to the April 24 guidance, the business market segment performed about as expected. In addition, we had strong branded unit growth in our key focus segments of color laser, laser multifunction products and inkjet all-in-ones, and cash flow for the quarter was good as Lexmark continued to have a strong financial position and balance sheet," said Paul J. Curlander, Lexmark chairman and chief executive officer in a press release and was later cited by the Business Channel of Yahoo. "In the consumer segment, our focus going forward will be on improving product cost and price, and on products, customers and countries that drive pages".
During the second quarter of 2007, revenues from the business segment grew by 3 percent when compared to the last year and the revenues from the consumer market segment declined 8 percent compared to a year ago. In the third quarter of 2007, the Lexmark company expects revenues to go down, hitting the range of $0.10 per share and that after a last quarter when they earned 65 cents per share. According to analysts from the Thomson Financial survey, the printer maker should expect a third quarter earnings of 15 cents per share, as the company predicts that sales will drop "in the low- to mid-single digit percent range".