Profits, Earnings Down for Xerox’s First Quarter
Xerox, which will split into two companies later this year, today reported results for its first quarter of 2016, with profits down 84 percent and revenue down 4 percent, with the firm citing continuing weakness of foreign currencies versus the U.S. dollar and restructuring costs.
Xerox’s revenue for its first quarter was $4.28 billion, down 4 percent versus $4.46 billion for first-quarter 2015, while profits totaled $34 million, or 3 cents per share, down from the $225 million and 19 cents per share Xerox reported for first-quarter 2015.
First-quarter revenue grew in the company’s Document Outsourcing and Business Processing Outsourcing businesses, said Xerox CEO and Chairwoman Ursula Burns. Document Technology revenue declines remained in line with last year’s fourth quarter, and continue to be pressured by weak developing markets’ economies, she said.
Xerox said it now expects full-year earnings per share of 45 cents to 55 cents, down from previous forecasts of 66 cents to 76 cents.
While first-quarter revenue was up in Xerox’s Document Outsourcing and Business Processing Outsourcing businesses, Document Technology (printers, copiers, etc.) revenue declined.
The Services business, which represented 58 percent of Xerox’s total revenue, delivered $2.5 billion in revenue, representing an increase of 1 percent, or 2 percent in constant currency. Services margin was 7.7 percent, up 0.1 percentage point. Revenue from Xerox’s Document Technology business was $1.6 billion, down 10 percent, or 9 percent in constant currency. Document Technology margin was 10.2 percent, down 2.5 percentage points.
In January, Xerox announced that it will separate into two companies, one providing office-imaging systems such as printers and copiers, the other providing business-processing services.
- Xerox Press Release: Xerox Reports First Quarter 2016 and Provides Update on Strategic Transformation and Separation
- March 2016: Xerox Obtains $1 Billion Loan from Seven Banks
- February 2016: Difficult Fourth Quarter for Xerox, But Surge in Entry-Level Color A4 MFP Sales
- January 2016: Xerox to Split into Two Companies, One Devoted to Printers, Copiers, Other to Business-Process Outsourcing
- November 2015: Billionaire Investor Icahn is Second-Largest Xerox Shareholder; Considering ‘Strategic Alternatives’ for Xerox
- October 2015: Difficult Quarter for Xerox; Will Review Operations
- July 2015: Revenue Down at Xerox for Second Quarter, Restructuring Affects Net Income
- July 2015: Xerox Completes Sale of its IT-Outsourcing Business to Atos
- April 2015: Xerox Revenue Down for First Quarter, Adjusts Forecast