|
Xerox reported Q4 earnings of USD0.15 per share, excluding restructuring charges and the effects of unhedged currency. Net loss however, including restructuring charges of USD0.19 as well as a USD0.06 gain from foreign currency and a USD0.03 loss from the Argentina devaluation, Xerox reported a fourth-quarter net loss of USD0.01 per share.
The company's figures came in line with the consensus estimate of analysts surveyed by Thomson Financial/First Call which predicted a loss of USD0.01 per share, although forecasts ranged from loss of USD0.06 to a profit of USD0.06.
While the company is still loss making on a net basis, it has improved its balance sheet dramatically from last year. Xerox reported USD4 million in losses for the most recent quarter, compared to USD20 million in losses for Q4 2000. The company also said selling, administrative and general expenses were down 25 percent and improved 4.5 percentage points to 27.7 percent of revenue. Continuing progress in inventory reductions resulted in a USD600 million or 30-percent decrease for the year, including a USD200 million reduction from third-quarter 2001.
For the year however, Xerox saw net loss increase. In 2001 net loss for the company was USD0.43 per share or USD293 million, compared to USD257 million in 2000. Revenues in 2001 were USD16.5 billion, compared with USD18.7 billion in 2000.
"Today's results are all about execution -- the precise execution of a turnaround strategy that has significantly strengthened Xerox's core operations while effectively positioning the company to exploit future market opportunities in its production, office and services businesses," said Anne M. Mulcahy, Xerox chairman and chief executive officer, in a statement.
Mulcahy said the difficult decisions made over the past year, including the closure of its small office home office operations which led to the loss of 450 jobs in Dundalk, have made Xerox "leaner, faster, and more flexible." She went on to say that all of the company's cost cutting measures have led to "a return to operational profitability, representative of the new Xerox that is emerging from our successful turnaround."
Xerox's revenue was for Q4 was USD4.3 billion, 13 percent lower than in the same period in 2000 but beat analyst forecasts of USD4.19 billion. "Weakened economic conditions continue to impact revenue, especially in high-end and colour products," Mulcahy admitted.
For the first quarter however, the printer and copier company said it was comfortable with the range of analysts' expectations of earnings per share between flat and a loss of USD0.03.
In Ireland Xerox still employs 600 staff in its Dundalk office and an additional 1,500 customer service staff in Dublin. Worldwide, the company employs over 80,000, although figures released by the firm on Monday show that Xerox cut around 13,500 jobs in 2001.
Xerox is on line at http://www.xerox.com
|
