Lexmark results beat expectations January 29, 2008 14:56 by John Sollars

After a doom laden week leading up to Lexmark International Inc, posting their fourth quarter earnings, they came in above analysts estimates on record sales to business clients and a range of new, more profitable products

Lexmark gained 13 percent in early trading after net income increased for the first time in three quarters. Profit came in at more than double the projections, before costs for closing plants and shifting workers to low-cost locations, and may exceed forecasts again this quarter.

Revenue from corporations rose 4 percent, helping to counter a slump in consumer sales brought on by price-cutting to fight bigger rival Hewlett-Packard Co. and a drop in orders from resellers including Dell Inc. Lexmark manufacturers printers under the dell brand, and has suffered low margins and falling sales through this channel. Lexmark closed a plant that made inkjet printer supplies, part of a shift to favor higher-profit laser products.

Business Sales

Lexmark Chief Executive Officer Paul Curlander has added new laser printers and machines that also scan and fax documents. He is focusing on business sales because those customers tend to buy more-profitable printers and supplies.

Consumer Sales

The consumer segment, which mostly sells inkjet printers, fell 15 percent to $509 million. The business sells products online and through retailers such as Wal-Mart Stores Inc.