Cost cutting boosts Lexmark’s 4Q profit; company signals improving demand

Cost cutting boosts Lexmark’s 4Q profit

LEXINGTON, Ky. — Lexmark International Inc. said Tuesday that cost cutting helped boost its fourth-quarter profit, beating Wall Street forecasts and lifting the printer and copier maker’s shares by 11 percent in premarket trading.

Lexmark also said it is seeing demand improve, and forecast results for the first quarter that topped current Wall Street projections.

The company earned about $59.8 million, or 76 cents per share, in the three months ended Dec. 31. That’s more than triple its profit of $18.1 million, or 23 cents per share, a year ago.

The most recent results included 40 cents per share worth of restructuring costs and other one-time expenses. Lexmark said last October that it would cut 825 jobs to save money, the second round of layoffs in a year as demand fell off during the recession. Excluding special items, it would have earned $1.16 per share.

Revenue slipped to $1.07 billion from $1.08 billion a year ago.

Analysts polled by Thomson Reuters, who typically exclude one-time costs, were expecting 62 cents per share on sales of $989 million, on average.

It projected a slight year-over-year rise in first-quarter revenue, which was $944.1 million in 2009.

It expects to earn 64 cents to 74 cents per share, including more restructuring charges. Adjusted earnings are expected at between 80 cents and 90 cents per share.

Analysts expect 61 cents per share and sales of $898.5 million.

Shares rose $2.95, or 11 percent, to $29.75 ahead of regular trading.

For the full year, earnings fell to $145.9 million, or $1.86 per share, from $240.2 million, or $2.69 per share, the year before. Sales fell to $3.88 billion from $4.53 billion.