Xerox had the following results in the 4th quarter of 2008:* Q4 net income $1 million; revenue falls 10%
* Sales of supplies and services down 8%
* Sales to high growth markets retreated
According to Reuters, Xerox barely eked out a profit in the fourth quarter, hurt by a dramatic decline in demand from Russia and other emerging markets, and $349 million in restructuring costs, sending shares down 9 percent.
The lingering sting of higher manufacturing costs, due to the strong Japanese yen, also caused the manufacturer of digital printers and provider of document management services to forecast a first-quarter profit that fell short of analysts' targets.
Xerox saw a startling 14 percent decline in revenue from high-growth regions, after these developing markets delivered 17 percent revenue growth through the first three quarters of 2008. Xerox cited soft currency exchange rates and the rapid weakening of Russian and eastern European economies.
"Where you really saw the weakness was in the developing markets," Cross said. "Some of these areas, whether its Brazil, Argentina or Russia, were really on fire. Multinational companies are going to have a challenge dealing with currency this quarter and going into 2009."
Xerox said fourth-quarter net income was $1 million, or nil per share. That is down from $382 million, or 41 cents a share, a year earlier.
In 2008, Xerox announced a restructuring plan, including about 3,000 job cuts, aimed at saving $200 million in 2009. In the fourth quarter, restructuring charges were 27 cents a share. Revenue fell 10 percent to $4.37 billion. Revenue from sales of supplies and services -- known as "post-sale" revenue -- fell 8 percent to $3.1 billion. Equipment sale revenue declined 15 percent to $1.3 billion, reflecting "weakened economic conditions around the world," Xerox said.
Source: Reuters
Key words: Xerox, profit, 2008, Russia
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