Xerox Says 11% Profit Dip Was More Than Expected
Xerox reported that its first-quarter earnings were $101 million, down 11% from last year’s $114 million.
Income from continuing operations declined 21% to $101 million from $127 million.
David T. Kearns, chairman and chief executive, said that the dip in earnings was expected but that the drop “was more than anticipated.”
Kearns said Xerox Financial Services had increased profits but “profits in our reprographics and information systems business were lower than expected due to the industrywide softness in the office equipment market.”
Financial Services contributed $63 million to Xerox income in the quarter, up 87% from the $34 million earned during the same period last year.
Income from the reprographics and information systems business was down 59% from last year.
Revenue from sales, rentals and service of reprographics and information systems business totaled 2.02 billion in the first quarter, up from $1.94 billion last year.
Income from its Crum & Forster insurance subsidiary was $54 million, compared to $21 million in the 1985 first quarter.