Xerox Corp. reported Friday morning a dip in second-quarter net income and sales due, in part, to a decline in its technology sales as a result of a continued weak business environment, particularly in Europe.
Xerox reported net income of $309 million, or 22 cents a share, versus net income of $319 million, or 22 cents a share, a year ago. Excluding special charges, earnings per share this quarter were 26 cents.
Sales were $5.54 billion, down 1 percent from $5.61 billion, a year ago.
Analysts polled by Thomson Reuters expected Xerox to report earnings per share of 26 cents on sales of $5.6 billion.
“With more than half our total revenue coming from services, accelerating growth in this segment of our business is a priority,” said Ursula Burns, Xerox chairman and CEO, in a statement.
The company generated $228 million in cash from operations, a decline primarily due to the change in the quarterly timing of cash pension contributions.
Xerox continues to expect full-year operating cash flow of $2 billion to $2.3 billion, and plans to repurchase $900 million to $1.1 billion in Xerox stock during the year.
Also during the quarter, the company recorded net restructuring and asset impairment charges of $29 million, which included some $25 million of severance costs related to headcount reductions of roughly 700 employees primarily in North America, and $5 million of lease cancellation charges.
Xerox ranked fourth on the most recent Rochester Business Journal list of private employers with 6,116 local workers.
Xerox expects third-quarter earnings of 20 cents to 22 cents a share. Third-quarter adjusted earnings per share is expected to be 24 cents to 26 cents. The company expects full-year earnings per share of 92 cents to 97 cents and full-year adjusted earnings per share of $1.07 to $1.12.
This story will be updated later today.
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