Xerox Second Quarter Profit Falls, Shares Drop On Guidance Cut
NORWALK, Conn. (AP) _ Xerox Corp. said Friday that its
second-quarter profit fell 3.1 percent, as continued weak economic
conditions, especially in Europe, reduced revenue at its technology
The Norwalk, Conn.-based company said that in light of the
continued economic uncertainty, it expects technology revenue,
which includes the sales of document systems, supplies, technical
services and the financing of products, to continue to be weak.
It issued lower-than-expected third-quarter profit guidance and
cut its earnings prediction for the full year.
Its shares fell 16 cents, or 2.2 percent, to $7.03 in morning
trading. Its shares are near the lower end of their 52-week range
of $6.55 to $10.41.
Xerox reported net income of $309 million, or 22 cents per
share, for the three months ended June 30, down from $319 million,
or 22 cents per share, a year ago.
Excluding 4 cents per share in one-time charges, the company
posted an adjusted profit of 26 cents per share. That matched the
average estimate of Wall Street analysts surveyed by FactSet.
Revenue edged down 1.3 percent to $5.54 billion from $5.61
billion. Analysts expected $5.5 billion.
Xerox said it expects to post an adjusted third-quarter profit
of 24 cents to 26 cents per share. For the full year, the company
said it expects earnings of $1.07 to $1.12 per share, down from its
April prediction of $1.12 to $1.18 per share.
Analysts polled by FactSet expect a third-quarter profit of 26
cents per share and a full-year profit of $1.11 per share.
(Copyright 2012 by The Associated Press. All Rights Reserved.)