Oem Xerox Earnings Down $56,000.000.00 Xerox Earnings Drop as Printer Sales Declines
BY Kelly Rhodes.
Xerox Corp., a well known maker of printers and copiers, reported a 6% fall in its first quarter earnings. The company’s earnings have been greatly affected by the strong dollar and low printer sales.
Xerox’s net income declined to $225 million or 19 cents a share in the first quarter from $281 million, an equivalent of 23 cents a share in the previous year. The company’s adjusted earnings a share came in at 21 cents, including 5 cents per share for amortization of intangibles. Earning a share were 16 cents.
Thomson Reuters’ estimated Xerox’s earnings at 21 cents a share on sales of about $4.56 billion. The company’s projected earnings were 16 to 18 cents a share and adjusted earnings of 20 to 22 cents a share. CEO Ursula Burns said that the company’s earnings conform to the guidance provided.
Xerox is now expecting adjusted earnings of between 95 cents to $1.01 per share, down from the company’s earlier forecast of between $1 and $1.06 per share. The company also expects currency fluctuations and revenue to fall by 1%, although its previous forecast indicates flat revenue for the year.
Although Xerox is well known for its printers and copier, it has been working to switch to a service provider that focuses on bill processing, IT outsourcing and document management. Xerox bought Consilience Software.
However, the merger has come with many challenges, including a decline in the sales of copiers and printers and, of course, the cost of expanding the business. The weakening of the Euro has also affected the company’s earnings.