Gains in Latin America Boost Xerox Profit 42% in 2nd Quarter

Xerox Corp. said Monday that its profit rose 42% in the second quarter, driven by productivity improvements and revenue growth from the office equipment maker’s Latin American operations.

For the three months ended June 30, the company earned $238 million, or $2.07 a share. That compares to $168 million, or $1.31 a share, in the year-earlier period.

Second-quarter revenue increased 8% to $4.64 billion, up from $4.29 billion a year earlier.

Xerox said income from its core document-processing business jumped 52% to $254 million, up from $167 million in the second quarter of 1994. Revenue from that operation--which makes copiers, scanners, printers and related software--improved 13% to $4.05 billion.

Xerox Chairman Paul A. Allaire said the gain was fueled primarily by productivity initiatives and strong growth in revenue and profits from Latin American operations.

The company trimmed 500 jobs from its worldwide document-processing staff in the quarter, leaving that division with 85,800 workers. Xerox has eliminated 10,600 jobs under a restructuring program announced in December, 1993.

Allaire said the company is continuing its exit from the financial services business. Within the last three months, Xerox has sold three insurance firms: Viking Insurance Holdings Inc., a unit of Talegen Holdings Inc.; the Xerox Financial Services Life Insurance Co., and Constitution Re Corp., another Talegen unit.

Allaire said the company’s increased interest in Rank Xerox Ltd. resulted in a significant contribution to earnings during the second quarter.