Lexmark International Inc. and Canon Inc. recently announced second quarter earnings for 2002, with Lexmark reporting increases in revenue and Canon reporting earnings are down slightly from a year ago.
Lexmark credits increasing laser and inkjet supplies revenue and foreign currency translation for record revenue and earnings per share of 67 cents, up from 65 cents a year earlier, a 3 percent increase. Lexmark announced an increase in revenue for the second quarter, at $1.058 billion, up 8 percent over last year’s $981 million.
Laser and inkjet supplies revenue was $566 million for second quarter 2002, up 18 percent from the same quarter in 2001. Supplies now account for 53 percent of total revenue, rather than last year’s 49 percent. Printer revenue also increased, from $361 million in second-quarter 2001 to $394 million, up 9 percent.
Gross profit margins decreased slightly for the quarter, from 34.2 percent last year to 32.0 percent this year. Lexmark points to lower profit margins on printers, partially offset by higher supplies margins and an increase of supplies in the product mix.
Canon Inc. announced both net sales and net income were down for the second quarter of 2002, due partly to foreign exchange rates; compared to the first half of 2001, the yen dropped 7 percent against both the U.S. dollar and the euro in the first half of 2002.
Canon’s second-quarter revenue was $6.112 billion, which is 3.4 percent lower than the same quarter of 2001, and net income of $346.3 million, a decrease of 26.8 percent over second quarter 2001. Due to higher gross profit margins, this resulted in an operating profit 2.2 percent higher than projections.
Canon executives reported that the sales and profits were "recovering steadily" in the first half of 2002, and that second half sales will increase with rising sales of laser printers and digital cameras.
Canon also will benefit from the launch of new products; it intends to actively introduce color and high-speed copiers.
For more information, visit www.lexmark.com or www.usa.canon.com.
