XEROX: $978MIL IN PROFITS FOR 2005

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XEROX: $978MIL IN PROFITS FOR 2005

 user 2006-06-01 at 11:17:00 am Views: 52
  • #15625

    Xerox Profits Hit US$978m And Reduces Debts.
    At
    Xerox’s annual shareholder meeting, chairman and chief executive
    officer Anne M Mulcahy, described Xerox’s strategies and said a focus
    on excellence will fuel shareholder value and growth. ‘Because of the
    progress we’re making, we’re back in the driver’s seat, in control of
    our own destiny and in a position to exploit our balance sheet to
    create shareholder value – and that’s precisely what we’re doing,’
    Mulcahy said. Xerox earned US$978 million on US$15.7 billion in revenue
    in 2005, whilst generating US$1.4 billion in operating cash flow and
    reducing debt by US$2.8 billion from year-end 2004.Reflecting continued
    confidence in Xerox’s performance, the board of directors authorised a
    US$1 billion share repurchase plan – the first in eight years.As of
    April 30, the company had re-purchased US$676 million in Xerox
    stock.Mulcahy noted that the company routinely invests about six per
    cent of its revenues in research, development and engineering – all
    based on customer need and all focused on areas where the company said
    it can deliver profitable revenue growth.Last year alone, Xerox
    launched 49 new colour and mono digital presses, printers, copiers and
    multi-function systems along with an array of document management
    services and software to help people anywhere they work, from the
    office to the commercial print enterprise.Nine additional Xerox systems
    have been launched so far this year, including last week’s announcement
    of the Docucolor 5000 digital press and three Workcentre colour
    multifunction devices that print, copy, fax and scan.The company
    believes that colour printing is rapidly becoming a business-critical
    tool for customers and the number of colour pages printed on Xerox
    devices has doubled in the past two years.Mulcahy commented: ‘Colour
    now represents more than 30 per cent of our total revenue.The potential
    for colour technology is as enormous as it is profitable.’ In a market
    estimated to be worth US$112 billion, Xerox believes its document
    management capability is key to the company’s growth strategy, based on
    aggressive competition in the US$58 billion digital mono printing
    market and its drive in the rapidly growing US$17 billion digital
    colour printing market.Xerox said it intends to create a new US$17
    billion market by harnessing digital technology to the world of offset
    printing with applications such as print-on-demand and personalised
    communications.The company added that it also aims to lead the
    burgeoning document services market by working with customers to reduce
    document costs, streamline processes and enable the flow of documents
    in the workplace around the world.Mulcahy said: ‘Ever since creating
    the plain-paper copier industry 50 years ago, documents have been part
    of the DNA of Xerox.We have research teams around the world that study
    the flow of documents in the workplace and develop smarter software and
    services that simplify this workflow.That’s an enormous advantage as
    the document becomes more digital, more dynamic and more critical to
    the conduct of business.’ She added that a ‘steady drumbeat’ of
    customers is turning to Xerox to help them manage the documents that
    keep their businesses running, including US$53 million in services
    contracts announced with the University of Calgary and Intercontinental
    Hotels Group.Also at the annual meeting, shareholders elected to vote
    all 11 members of the Xerox board of directors, including director Mary
    Agnes Wilderotter, chairman and chief executive officer of Citizens
    Communications, who joined the board earlier this year.Re-elected to
    the board are Glenn A Britt, Richard J Harrington, William Curt Hunter,
    Vernon E Jordan Junior, Hilmar Kopper, Ralph S Larsen, Robert A
    McDonald, Anne M Mulcahy, N J Nicholas Junior, and Ann N Reese.More
    than 90 per cent of the Xerox board is considered
    independent.Shareholders also approved the selection of Pricewaterhouse
    Coopers as the company’s independent auditors for 2006.In addition,
    shareholders voted against a shareholder proposal related to director
    election by majority vote and a shareholder proposal related to senior
    executive bonuses.In related news, the Xerox board of directors
    declared a dividend of US$1.5625 per share on outstanding 6.25 per cent
    Series C mandatory convertible preferred stock.The dividends will be
    paid July 1 to shareholders of record as of June 9.