24 Jan 2009

Xerox profit falls

9:20 am on 24 January 2009

Xerox Corp barely made a profit in the fourth quarter, due to a decline in demand from emerging markets, and $US349 million in restructuring costs.

Xerox provides digital printers and document management services.

Fourth-quarter net income was $US1 million, down from $US382 million a year earlier.

Revenue from high-growth regions fell by 14%. Developing markets previously delivered revenue growth of 17% in the first three quarters of 2008.

Soft currency exchange rates and the rapid weakening of Russian and eastern European economies were cited as the reasons.

Xerox announced a restructuring plan late last year, including about 3000 job cuts, aimed at saving $US200 million in 2009.

Overall revenue was down 10% to $US4.37 billion. "Post-sale" revenue was down by 8% to $US3.1 billion.

Xerox shares fell 8.7% to $US6.93 in early afternoon trading on Friday on the New York Stock Exchange.