Xerox results top expectations

Xerox Inc. said strong demand for color printers and office services led to a third-quarter profit that beat Wall Street expectations, although earnings fell 53% from year-ago results that were boosted by a tax gain.

The Stamford, Conn.-based office equipment maker earned $254 million, or 27 cents a share, down from $536 million, or 54 cents, a year earlier. The 2006 figures included a tax gain of 45 cents a share that was partly offset by restructuring and litigation charges of 14 cents a share.

The results beat the profit of 26 cents a share expected by analysts surveyed by Thomson Financial.

“This quarter’s solid results are proof positive that our business model is on track, generating double-digit profit growth and fueling a strong annuity pipeline that serves us well for the long term,” said Xerox Chief Executive Anne M. Mulcahy.

Revenue grew 12% to $4.3 billion, helped by the weaker dollar and contributions from the acquisition of Global Imaging Systems. Analysts expected total revenue of $4.24 billion.

Xerox shares dropped 54 cents, or 3.14%, to $16.67.