Lexmark 2009 Annual Report Download - page 3

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Paul J. Curlander
Chairman and CEO
To my fellow shareholders,
The past year has been challenging as the current economic downturn impacted our industry, with every
competitor experiencing significant declines in revenue. We believe 2009 showed our strategy is working
because we outperformed the market and gained share in our focus segments of workgroup lasers and
business inkjets. We believe Lexmark’s competitive position is stronger today than before the start of the
economic downturn, and we’ve done this while continuing to maintain a strong financial position.
Making Lexmark a leaner, stronger company
Our objective during this downturn has been to make Lexmark a leaner, but stronger, company with a stronger
competitive position. Accordingly, we took a number of actions to reduce our cost and expense, while continuing
to fund our core strategic initiatives. Lexmark’s core strategy is to focus on specific segments of the market,
workgroup lasers and business inkjets, and leverage Lexmark’s strengths in vertical technology integration,
solutions and services to differentiate ourselves from competitors and bring value to our customers.
During 2009, we announced three separate restructuring actions to reduce our cost and expense. These
actions, along with our prior restructurings and other expense actions enabled us to reduce our operating
expense more than $200 million in 2009. We also continued to improve our working capital performance
through the year. While becoming leaner in 2009, we continued to fund and pursue our core strategic initiatives
in research and development, marketing and sales, and solutions and services.
Strengthening our competitive position
In 2009, we launched a number of new products improving our competitive position in color lasers, laser MFPs
and business inkjets. According to our internal assessment for the U.S., Lexmark received 38 percent of the
industry laser product awards, which is more than three times the number for the next closest competitor, and
received 28 percent of industry inkjet product awards, up significantly from 2008 and making us No. 2 in inkjet
awards received.
We have also strengthened our path to market through expansions of our shelf space in U.S. office superstores.
In our small and medium business channel, we continued to expand the number of value added resellers who
are offering Lexmark products to their customers.