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 10:47:36 am Views: 48
  • #22529

    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.