To my fellow Lexmark stockholders: When I wrote to you a year ago, I was pleased to report that despite a weak economic environment, Lexmark had outperformed the market by growing revenue and generating profit in each quarter of 2001. Because the timing of a recovery was uncertain, we took steps to decrease the size of our infrastructure and lower expenses in the event of a prolonged downturn. As a result of that restructuring and the success of our new products, Lexmark delivered financial results in 2002 that set records for revenue, operating income and earnings per share.
Our revenue for 2002 was $4.4 billion, up 6 percent from 2001. Diluted net earnings per share were $2.79, an increase of 36 percent. Operating income grew 50 percent to $511 million and cash from operations rose to $816 million - a growth rate of 317 percent. Importantly, we also saw a significant increase in our installed printer base, which is expected to fuel a current and future stream of supplies revenue.
As we move forward into 2003, we continue working to strengthen our company, and there are three significant reasons why we are optimistic about the future. |
