Restructuring dents Xerox's 4Q earnings

Jan 26, 2011 By ANDREW VANACORE , AP Business Writer

(AP) -- Xerox said its fourth-quarter earnings dipped 5 percent from a year ago, largely due to the costs of restructuring. A tepid outlook and the departure of long-time Chief Financial Officer Lawrence A. Zimmerman sent company shares down 7 percent, leading the S&P 500 lower.

"Investors had a high level of comfort with Larry," JMP Securities analyst Douglas Ireland said. "He's been a very steady hand on the wheel."

said Wednesday it is poaching the of Nokia Siemens Networks, a joint venture between Finland's Nokia Corp. and Siemens AG of Germany. Luca Maestri, 47, will replace Zimmerman, 68, when he retires next month.

In the last three months of 2010, Xerox reported of $171 million, or 12 cents per share. That's down from $180 million, or 20 cents per share, a year earlier.

Xerox has been trimming its work force around the globe after buying outsourcer Affiliated Computer Services last year. Since announcing the $6 billion deal, it has disclosed plans to lay off some 5,000 workers.

Stripping out restructuring and other one-time expenses, earnings would have been 29 cents per share, a penny better than analysts surveyed by FactSet expected.

Revenue jumped 42 percent to nearly $6 billion, mainly because of the ACS deal. That was in line with estimates.

Yet Xerox said it expects adjusted earnings of 20 to 22 cents per share for the first quarter, which is a penny shy of estimates.

And for the full year, it projected adjusted earnings per share of $1.05 to $1.10. Analysts were looking for the high end of that range, on average.

Shares in Xerox Corp. fell 79 cents to $10.61 when the market opened.

The company's full-year earnings came to $606 million, or 43 cents per share, up 25 percent from $485 million, or 55 cents per share, in 2009. Revenue climbed 43 percent to $21.6 billion from $15.2 billion.

Explore further: China's Xiaomi raises more than $1 bn in funding

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Cost cuts boost 4Q profit for Xerox during slump

Jan 21, 2010

(AP) -- Xerox Corp. said Thursday that cost cutting boosted its fourth-quarter earnings. And it forecast a bigger-than-expected profit for this year, when it will fuse with Affiliated Computer Services Inc. ...

Game sales strong for EA but outlook hurts shares

May 11, 2010

(AP) -- Video game publisher Electronic Arts Inc. said Tuesday that strong sales of games such as "Battlefield: Bad Company" and "Mass Effect 2" gave the company a quarterly profit above expectations. But its outlook fell ...

Qwest Communications 3Q earnings fall 6 pct

Oct 28, 2009

(AP) -- Qwest Communications International Inc. reported a 6 percent drop in third-quarter profit Wednesday as customers continue to give up traditional landline telephones.

AMD tops estimates with 4Q results

Jan 21, 2011

(AP) -- Advanced Micro Devices Inc. said Thursday that its fourth-quarter profit shrank from a year ago, when a big legal settlement it won from archrival chip maker Intel Corp. pumped up AMD's earnings.

Recommended for you

China's Xiaomi raises more than $1 bn in funding

12 hours ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.