This Week
  • GM injection: The automaker has invested $150 million here since 2011.

  • East High School teacher and blogger Kelly LaLonde speaks out about education.

  • HBT Architects took a risk and parted with some clients on its new path.

  • Placing a loved one in an elder care facility is not an easy decision for caregivers.

  • Robert W. Hurlbut heads a 1,400-employee business started by his grandparents.

  • The new edition of Explore Greater Rochester is here.

Xerox shares fall after Q3 profit, revenues dip

Rochester Business Journal
October 23, 2012

Xerox Corp. stock dropped Tuesday following the company’s release of its third-quarter financial results.

The company reported year-over-year decreases in profit and sales driven, in part, by continued economic challenges in the United States and Europe.

Xerox shares (NYSE: XRX) were trading mid-afternoon at $6.50, down nearly 8 percent from Monday’s close of $7.03.

The earnings matched Street expectations, but revenues were lower than expected.

Net income attributable to Xerox was $282 million, or 21 cents a diluted share, down from a profit of $320 million, or 22 cents a diluted share, a year ago. Excluding special charges, Xerox reported adjusted earnings per share of 25 cents, down from 26 cents a year ago.

Revenue was $5.4 billion, down 3 percent from $5.6 billion a year ago.

Analysts polled by Thomson Reuters expected Xerox to report earnings per share of 25 cents on revenues of $5.5 billion.

“Our third-quarter performance aligns with shifts in our business as services become a larger proportion of our revenue, and reflects the dynamics of a challenging economy that is creating cost pressures for large enterprises and governments,” said Ursula Burns, chairman and CEO, in a statement.

Revenue from the company’s services business was up 6 percent in constant currency, partially offsetting a 7 percent constant currency decline in technology revenue, which represents the sale of document systems, supplies, technical service and financing of products.

The company generated $594 million in cash from operations and is on track to deliver full-year operating cash flow of $2 billion to $2.3 billion as well as repurchase $900 million to $1.1 billion in Xerox stock during the year, the company said.

During the quarter, Xerox recorded net restructuring and asset impairment charges of $14 million, which included roughly $17 million of severance costs related to headcount reductions of some 870 employees primarily in North America. The costs partially were offset by $3 million of net reversals for changes in estimated reserves from prior period initiatives, Xerox said.

In the fourth quarter, Xerox plans to take a restructuring charge of $50 million to $100 million. Until the plans are finalized, the company’s earnings per share guidance excludes this charge.

Xerox expects fourth-quarter earnings of 29 cents to 31 cents per share. Fourth-quarter adjusted earnings per share are expected to be 33 cents to 35 cents. As a result, full-year 2012 earnings per share are expected to be 92 cents to 94 cents and full-year adjusted earnings per share $1.07 to $1.09.

Xerox ranked first on the most recent Rochester Business Journal list of manufacturers with 6,100 local workers.

(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.


What You're Saying 

There are no comments yet. Be the first to add yours!

Post Your Own Comment

 
Username:
Password:

Not registered? Sign up now!
 

To Do   Text Size
Post CommentPost A Comment eMail Size1
View CommentsView All Comments PrintPrint Size2
ReprintsReprints Size3
  • E-mailed
  • Commented
  • Viewed
RBJ   Google