Lexmark International Inc broke through the $3bn barrier in 1998, reporting fourth quarter net income up 43% at $82m over $57m on revenue up 23% at $907m from $736m last time. Earnings per share were $1.16, five cents ahead of expectations. For the year the company reported net income up 49% at $243m over $163m on revenue which rose 21% at $3.021bn over $2.494bn. The company says US and European revenues grew most strongly, they account for 84% of sales, while Asia/Japan was disappointing. It doesn’t break down sales of ink jet versus laser jets products but said ink jet prices are declining 15% to 20% a year. It says the sub-$100 market is hot. The volume laser jet business is now at the 18 pages per minute product level. Printers and consumables account for 84% of the company’s revenue, up from 81% last year. It expects revenue from sales to telecoms, utilities and hospitality companies to grow strongly. No one OEM accounts for more than 10% of its business, the company says. It expects gross profit margins to be the same this year as they were in 1998. Operating expenses should decline, it says. It expects to use its large cash pile to continue buying back shares. It is expected to have around $300m by the end of 1999, which is more than it would ideally have wanted.
