Lexmark 2009 Annual Report Download - page 4

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Performing better than the market
Even though our fi nancial results were impacted by the diffi cult economic conditions in 2009, we believe our
strategy is working as we performed better than the market last year. As a result of the improvements in our
product line and path to market, our revenue decline of 14 percent in 2009 was less than the industry average
decline. We had good growth in 2009 in both our color laser and laser MFP units, signifi cantly outperforming
the market. We also continued to have strong growth in 2009 in our managed print services business as we
continued to help our enterprise customers optimize their output environment and improve their paper based
workfl ow. This success enabled us to gain branded unit share in the workgroup laser segment. In inkjet, the
positive reception of our new products, our expansion in U.S. offi ce superstores and the strong growth in the
retail sell out of our Professional Series products, enabled us to gain branded unit share in the “above $100
inkjet segment” in our focus geographies of the U.S. and Europe.
Maintaining a strong fi nancial position
Our second half 2009 fi nancial results improved substantially compared to the fi rst half. The improvement was
broad based, and in the fourth quarter we delivered particularly strong growth year over year in net income
and cash fl ow. These fourth quarter results included a return to growth in our laser business and a signifi cant
sequential improvement in the year over year performance of our inkjet business. For the year, net cash from
operations was $402 million, marking the eighth consecutive year of net cash from operations over $400 million,
and the 17th consecutive year of positive cash fl ow for the company. We ended 2009 maintaining our strong
fi nancial position with more than $1.1 billion in cash and current marketable securities.
Our people make the difference
At Lexmark, our greatest strength is our people. I often hear from customers that our people differentiate
us from the competition. Customers tell me that our people listen to them, understand their processes, and
proactively suggest solutions that match their needs. It’s the commitment of our employees to our vision of
creating customers for life that enables us to continue to win and renew our business with some of the largest
companies in the world. Their continuing commitment to our customers will enable us to work through the
current challenging economic environment and emerge as a stronger company.
In closing, I want to thank our customers, employees, business partners and investors for your continued support.
Sincerely,
Paul J. Curlander
Chairman and Chief Executive Offi cer
Lexmark International, Inc.