Weaker demand, changes in currency exchange rates cited
LEXINGTON, Ky. (July 12, 2012) — Lexmark International, Inc.’s (NYSE: LXK) second quarter 2012 financial results will be lower than expected, the company said Thursday.
Second quarter revenue is expected to decline about 12 percent year over year, based on a preliminary analysis of second quarter financial results.
In April, Lexmark said it expected second quarter revenue to decline only 7 to 9 percent.
It cited weaker than expected demand, particularly in Europe, and a larger than expected impact from changes in currency exchange rates as the reasons for the decline.
“The weaker demand environment prevented the company from overcoming this currency shift,” Lexmark said in a press release.
Those factors also are expected to affect the second half of the year, the company said. It will issue its projections for the rest of the year July 24.
Earnings per share are now expected to be in the range of 53 to 55 cents. Lexmark previously said earnings per share would be 65 to 75 cents.
Shares of Lexmark dropped as low as $20.75 Friday, after decreasing 7.5 percent to $24.31 at the close in New York yesterday.
The shares had lost 26 percent this year, according to Bloomberg News.