Xerox Reports Preliminary 3Q Results, Cautiously Optimistic for 4Q Profitability
Press release from the issuing company
STAMFORD, Conn.--Oct. 12, 2001--Xerox Corporation today announced preliminary third-quarter results that include an estimated $3.8 billion to $4 billion in revenue and a loss in the range of 22 to 25 cents per share, before net restructuring charges of 5 cents.
Results were impacted by a number of factors including a reduction of approximately 9 cents due to currency losses from unhedged exposures, a tax rate change, and a property insurance deductible related to Sept. 11 losses.
"In many regards, Xerox's performance in July and August exceeded expectations and we were well positioned to meet our third-quarter targets,'' said Anne M. Mulcahy, Xerox president and chief executive officer. "However, the events of Sept. 11 resulted in a significant impact on sales for the balance of the month - typically the strongest two weeks of the quarter.
"We continue to aggressively implement our cost-reduction initiatives and focus on operational improvements. With further progress expected in these areas, we remain cautiously optimistic for a return to operational profitability in the fourth quarter,'' added Mulcahy.
The company also reported continued progress in strengthening its liquidity. After the repayment of approximately $350 million in third-quarter maturing debt, Xerox had $2.4 billion in cash at the end of September, compared to $2.2 billion at the close of the second quarter.
Xerox continues to be in full compliance with its debt covenants and expects the consolidated tangible net worth cushion to be approximately $200 million.
Xerox will report its full third-quarter results on Oct. 23, 2001.
WhatTheyThink is the global printing industry's go-to information source with both print and digital offerings, including WhatTheyThink.com, WhatTheyThink Email Newsletters, and the WhatTheyThink magazine. Our mission is to inform, educate, and inspire the industry. We provide cogent news and analysis about trends, technologies, operations, and events in all the markets that comprise today's printing and sign industries including commercial, in-plant, mailing, finishing, sign, display, textile, industrial, finishing, labels, packaging, marketing technology, software and workflow.