*NEWS*XEROX’S 1ST Q. PROFITS FALL

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*NEWS*XEROX’S 1ST Q. PROFITS FALL

 user 2005-04-22 at 11:18:00 am Views: 87
  • #9054
    Xerox Profit Falls in First Quarter
     
    Xerox Corp., which makes copiers, printers, scanners and fax machines, on
    Thursday said first-quarter earnings fell 13 percent, reflecting last year’s
    gain on the sale of its ContentGuard business, and indicated second-quarter
    profit will be in line with estimates.
     
    Earnings after preferred dividend payments fell to $196 million, or 20
    cents a share, for the January-March period from $224 million, or 25 cents a
    share, last year. That reflects preferred dividends of $14 million in the latest
    period and $24 million in the year-ago. Excluding the gain from the ContentGuard
    sale, earnings from continuing operations lsat year were $165 million, or 17
    cents a share.
     
    Revenue fell 1 percent to $3.77 billion from $3.83 billion.
     
    Analysts surveyed by Thomson Financial expected Xerox to earn 19 cents a
    share on sales of $3.86 billion.
     
    “Our profit performance in the first quarter met the high range of our
    expectations through increased gross margins and operational improvements that
    help ensure Xerox is cost-competitive in every area of our business,” said Anne
    M. Mulcahy, Xerox chairman and chief executive, in a statement.
     
    Xerox said first-quarter color revenue rose 15 percent, while equipment
    sales were flat. Revenue growth continued to be hurt by post-sale revenue
    declines from the company’s older light-lens technology. Weak performance in
    Brazil also impacted post-sale and total revenue in the first quarter, although
    trends are improving in this operation, Xerox said.
     
    First-quarter gross margins were up nearly 1 percent to 40.7 percent.
     
    Xerox expects second-quarter earnings of 21 cents to 24 cents a share, in
    line with analysts’ estimates for earnings of 23 cents.
     
    Shares of Xerox fell 4 cents to $13.68 in morning trading on the New York
    Stock Exchange. The stock has traded between $12.55 and $17.24 over the past
    year