UPDATE 1-Lexmark first-quarter profit rises
(Adds results, background)
NEW YORK, April 22 (Reuters) - Lexmark International Inc. (LXK.N) on Tuesday said first-quarter quarter profit rose, beating expectations, helped by a 42 percent drop in inkjet printer sales.
Lexmark and other companies typically sell low-end inkjet printers at a loss, hoping for the long-term sales of more-profitable replacement supplies such as toner. Lexmark last year began a shift in its consumer market focus to customers who print more pages.
Net income for the first quarter rose to $101.7 million, or $1.07 a share compared, from $92.4 million, or 95 cents a share, one year ago.
Excluding costs related to restructuring, profit was $1.16 a share, the company said. Analysts had expected a profit of 89 cents a share, according to Reuters Estimates.
"Although EPS greatly exceeded expectations in the first quarter and we had good cash generation performance, we have more work to do as we continue to implement our strategy to drive our growth in higher-usage segments," Chief Executive Paul Curlander said in a statement.
Revenue fell 7 percent, to $1.18 billion from $1.26 billion one year ago. Laser and inkjet printer revenue declined 18 percent.
Lexmark has been cutting costs and trimming prices in an effort to better compete with rivals such as Hewlett-Packard Co (HPQ.N) and Canon Inc (7751.T). In October, it said it would consolidate operations in Mexico, including closing one plant and moving about 1,650 jobs to lower-cost countries. (Reporting by Franklin Paul; Editing by Mark Porter and Derek Caney)
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