Lexmark shares fall on 2Q outlook

The company's shares fell $4.23, or 12 percent, to $31.08 in afternoon trading. They have traded in the last 12 months between $26.55 and $62.87.

It said it expects a second-quarter profit of 65 cents per share to 75 cents per share, excluding one-time costs and gains.

Analysts polled by Thomson Financial expect sales of 73 cents per share.

It also said it expects sales to be down about 5 percent year-over-year in the second half of the year.

Banc of America Securities analyst Ananda Baruah said in an analyst note that the outlook was lighter than anticipated, which could be caused by some marketing softening in the U.S.

First-quarter profit rose 10.1 percent to $101.7 million or $1.07 per share from $92.4 million or 95 cents per share last year.

Excluding one-time costs and gains, it earned $1.16 per share, compared with 96 cents per share last year.

Sales fell to $1.18 billion compared with $1.26 billion in 2007.

Analysts expected a profit of 90 cents per share on sales of $1.17 billion.