Xerox Sees Its Fortunes Rise by 26% on Copier Growth

Xerox said Thursday that its first-quarter profit rose 26%, fueled by a pickup in digital copier sales and a rejuvenated sales force.

The Stamford, Conn.-based copier company reported net income of $237 million, or $1.95 a share, well above analysts’ estimates, compared with profit from operations of $187 million, or $1.54, in the year ago. In the year-ago quarter, a loss of $40 million, or 34 cents, from its discontinued insurance operation resulted in net income of $147 million, or $1.20 a share.

Wall Street expected Xerox to report profit of $1.76 a share.

Sales rose 5% in the United States as Xerox hired sales people to fill empty posts. The company lost several key digital copier sales employees last year as it merged sales districts and lowered commissions to trim costs.

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US West Communications Group said first-quarter profit rose 4.7% because of higher calling volume on its phone network and increased revenue from special services, including caller ID.

Profit from operations rose to $289 million, or 61 cents a share, from $276 million, or a pro forma 59 cents, in the year-earlier period.

The company’s profit increase is less than that of most other Bell regional operating companies and far short of the 19% reported by Nynex, which had the biggest percentage increase.

Per-share results were in line with the average estimate of Wall Street analysts.

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Starbucks, the nation’s largest coffee bar chain, said its profit more than doubled in the latest quarter, but only because of a one-time gain from the sale of a stake in a bagel chain.

Starbucks said net income jumped to $10.4 million, or 14 cents a share, in its second fiscal quarter, from $5.1 million, or 7 cents a share, in the 1995 period.

Analysts said that excluding a one-time after-tax gain of $5.6 million, or 7.5 cents a share, from the sale of a stake in Noah’s New York Bagels, Starbucks’ earnings were in line with expected net income of 7 cents a share.

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At a Glance:

Procter & Gamble’s earnings increased by 20% in the third quarter to $760 million, or $1.07 a share, compared with $631 million, or 88 cents per share, in the same period last year.

Delta Air Lines reported lower-than-expected fiscal third-quarter earnings of $63 million, or 80 cents a share, contrasted with a year-earlier loss of $11 million, or 66 cents, lower than the $1 estimate by Wall Street.

Silicon Graphics said fiscal third-quarter net income fell to $53 million, or 31 cents a share, from $68 million, or 38 cents, in the year-ago quarter.

Quaker Oats said first-quarter earnings fell 22% to a better-than-expected $32.2 million, or 23 cents a share, compared with $41.1 million, or 30 cents, a year ago.

Glendale Federal Bank reported earnings of $20.4 million, or 23 cents a share, for the third quarter of fiscal 1996, versus net earnings of $40.9 million, or 64 cents a share, for the third quarter of fiscal 1995.

Maxicare Health Plans reported a 22% rise in first-quarter earnings to $5.74 million, or 31 cents a share, from $4.69 million, or 35 cents, a year earlier. Profit was lower than the 36 cents a share expected by Wall Street.

Dow Chemical said first-quarter earnings fell 16% to $476 million, or $1.90 a share, from year-earlier profit from continuing operations of $566 million, or $2.03.

Revlon reported a narrower first-quarter loss of $30.1 million, or 66 cents, compared with a loss of $33.7 million, or 79 cents, in the year-ago quarter.

Sara Lee said third-quarter earnings rose 13% to $188 million, or 37 cents a share, from $166 million, or 33 cents a share, in the year-earlier period.

AirTouch Communications said first-quarter profit rose an expected 48% to $52.2 million, or 10 cents a share, from $35.3 million, or 7 cents, in the year-ago period.

Pixar Animation Studios reported first-quarter net income of $6.3 million, or 13 cents, contrasted with a loss of $675,000, or a loss of 2 cents a share, for the same period last year.

Southern Pacific Rail said first-quarter net income fell to $6.1 million, or 4 cents a share, from $16.5 million, or 11 cents, a year ago.

Tyco Toys said its first-quarter loss widened to $10.2 million, or 32 cents a share, from $6.7 million, or 21 cents, a year ago.

Imperial Bancorp reported net income for the first quarter rose 46% to $6.7 million, or $0.43 a share, from $4.6 million, or 31 cents, in the year-ago period.