Xerox profit slips despite higher sales

Office equipment maker Xerox today posted slightly lower quarterly profit but said improving equipment sales helped the results…

Office equipment maker Xerox today posted slightly lower quarterly profit but said improving equipment sales helped the results top most expectations.

The Connecticut-based company said net income was $86 million, or 9 cents a share, down from $87 million, or 11 cents per share, a year earlier.

Earnings after payment of preferred dividends were 75 million.

The earnings include a charge of five cents a share for fees related to a terminated credit facility. Before the charge, profit was 14 cents a share, Xerox said.

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On this basis, analysts on average had expected 13 cents a share, according to Reuters Research, a unit of Reuters Group.

Revenue fell to $3.92 billion from $3.95 billion a year earlier despite a boost from currency translation. Xerox attributed the drop to slower sales of post-sales products such as services and supplies, and "moderating declines" in its developing markets business.

Equipment sales grew 8 per cent, boosted by sales of colour printers. Xerox shares closed on Friday at $10.73 on the New York Stock Exchange.