Xerox fourth quarter barely profitable

Blames restructuring and slowing developing economies

Xerox has reported a very disappointing fourth quarter, turning in just $1 million in profit.

The company said that restructuring costs, weakness in developing markets and currency fluctuations were responsible for the disappointing quarter, but that overall results for the year were good.

“In the fourth quarter, the continued weakening economy and rapid shift in exchange rates put pressure on the business,” said Anne Mulcahy, chairman and chief executive officer.

“Despite this challenging marketplace, we delivered $265 million in adjusted
net income for the quarter and $985 million for the year. We continue to prioritize cash and productivity to give us flexibility in this uncertain
environment.”

The quarterly results revealed a worrying slowdown in demand. Sales revenue fell 10 per cent, sales of supplies and services fell 8 per cent and equipment sale revenue declined 15 per cent, to $1.3 billion.

The company said that demand in Russia and Eastern Europe had dropped off sharply, from growth in the high teens for the first three quarters to a drop of 14 per cent in the last quarter.