Printer Supplies Drive Lexmark 4Q GainsPrinter Supplies Drive Lexmark 4Q Gains

Lexmark International Inc. said Thursday that its fourth-quarter net income more than tripled, as sales of printer supplies more than offset a decline in hardware revenue.

Lexmark, based in Lexington, Ky., is the No. 2 maker of computer printers behind Hewlett-Packard Co.

For the fourth quarter, Lexmark reported net income of $116.3 million, or 90 cents a share, compared with $36.8 million, or 27 cents a share, in the prior year.

Both periods included one-time items. The recent period included a $5.9 million reversal of previously accrued restructuring charges.

Excluding items, earnings were 86 cents a share in the latest fourth quarter--in line with analysts' expectations--and 46 cents a share in the previous fourth quarter.

The earnings matched Lexmark's recently raised outlook. The company boosted its fourth-quarter view earlier this month to 88 cents to 90 cents a share, including the gain from accrued restructuring charges. The prior forecast was 70 cents to 80 cents a share.

Revenue rose 6% to $1.21 billion from $1.14 billion.

Laser and inkjet supplies revenue was $654 million for the fourth quarter, up 23% from $530 million. It was also 54% of total revenue--up from 46% in the prior fourth quarter.

Laser and inkjet printer revenue was $456 million, down 6% from $487 million in the previous fourth quarter.