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Lexmark to feel effects of Circuit City's closing

Lexmark Chief Executive Paul Curlander told analysts during the company's fourth-quarter earnings call Tuesday that Circuit City, which is closing all of its stores, accounted for 2 percent of the inkjet division's revenues in 2008.

While that is not a large amount it clearly cuts into Lexmark's consumer electronics presence.

"Clearly the bankruptcy of Circuit City and its liquidation is disappointing from our perspective," Curlander said.

The electronics retailer had been a strong partner for Lexmark, and last year the two even cooperated on television advertisements promoting Lexmark's wireless inkjet printers.

At 2 percent of the inkjet division's 2008 $1.55 billion in revenue, Circuit City would have meant roughly $31 million.

The news comes as Lexmark's inkjet division continues to struggle, as it has since the latter half of 2005.

Lexmark products were also dropped by Best Buy stores last year.

To read the complete article, visit The Lexington Herald-Leader.

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