XEROX: $978MIL IN PROFITS FOR 2005

[Anonymous]

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. 

[Author]

June 1, 2006 at 11:17 AM