Xerox Corporation has posted an 11-per cent drop in third quarter net income due to intense competition, poor business in Brazil and a reorganisation of its US customer-service division.

The copy machine giant, which had warned of its poor results earlier this month, also said problems were expected to continue into the fourth quarter and first half of next year.

Xerox employs 1,200 workers at its technology park in Dundalk, Co Louth, and 100 at its European customer services centre in Blanchardstown, Co Dublin. The company plans to hire an additional 2,200 workers by 2002 as part of a £350 million investment, which is proceeding.

Quarterly net income was $339 million (or 47 cents a share) versus $381 million (or 53 cents a share) the company said.