XEROX Q3 PROFIT FALLS 52% DUE TO WEAK DEMAND

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XEROX Q3 PROFIT FALLS 52% DUE TO WEAK DEMAND

 user 2009-10-23 at 10:46:48 am Views: 54
  • #22820

    http://online.wsj.com/article/SB10001424052748703816204574488933558487924.html
    XEROX Q3 PROFIT FALLS 52% DUE TO WEAK DEMAND
     Xerox Corp.’s third-quarter profit fell 52% as the office-equipment company posted lower revenue and said it hadn’t seen a meaningful shift toward increased spending on technology.”For many of our business clients—small to large—there remains a hesitancy to invest until more economic factors show signs of steady improvement,” Chief Executive Ursula Burns said in a statement. “We expect this trend will continue to put pressure on revenue for the balance of the year.”The company projected fourth-quarter earnings of 20 cents to 22 cents a share. But despite the warning of revenue pressure, Xerox also raised its full-year forecast to 55 cents to 57 cents a share from its July outlook of 50 cents to 55 cents.

    The recession has exacerbated weak demand for printers, and results have been muted by a stronger dollar as much of its revenue comes from overseas. In a bid to seek new markets as its traditional lines of business lose steam, Xerox recently agreed to buy business-software provider Affiliated Computer Services Inc. in a deal valued at $5.6 billion.Xerox on Thursday posted earnings of $123 million, or 14 cents a share, down from $258 million, or 29 cents a share, a year earlier. The company in July projected earning 10 cents to 12 cents a share.

    Revenue dropped 16% to $3.68 billion. The revenue decline was attributed to world-wide economic weakness.Gross margin improved to 39.8% from 39.2% amid restructuring and other cost cuts.Equipment sales fell 29%. But revenue for service, supplies and rentals dropped 11%,.The company said it cut debt by $938 million so far this year and is on track to reduce total debt by $1 billion this year.