LEXMARK Q1 PROFIT UP 61%
Lexmark International Inc.’s first-quarter profit jumped 61%
as sales grew amid an improving economy.The company also projected
second-quarter earnings of 85 cents to 95 cents a share, higher than
analysts’ latest average estimate of 73 cents, according to Thomson
Reuters.
Shares rose 8.9% premarket to $43.49 as the latest
results beat expectations.
The printer maker and service provider
showed signs of rebounding in the fourth quarter, reporting its first
year-over-year profit increase in two years. It’s been cutting jobs and
trimming costs in response to pullback by consumers and corporations.The
first-quarter results reflect improved market conditions, a stronger
product line and a lower cost structure, Chairman and Chief Executive
Paul Curlander said.Lexmark reported earnings of $95.3 million, or $1.20
a share, from $59.2 million, or 75 cents a share, a year earlier.
Excluding restructuring-related charges and project costs, profit rose
to $1.35 from 89 cents as revenue climbed 10% to $1.04 billion.The
company in February projected earnings of 80 cents to 90 cents on
revenue of less than $1 billion, well above analysts’
then-expectations.Gross margin widened to 36.9% from 35.3%