Xerox Corporation (Stamford, CT) announced a Q2 operations loss of 10 cents per share, which includes currency losses of two cents. Including net restructuring charges, gains from the early retirement of debt and a charge associated with the disengagement from the small office/home office (SOHO) business, the company reported a second quarter loss of 40 cents per share.
"Xerox is delivering progress in key areas of the business, including cost reduction as well as improvement in inventory turnover and gross margins," said Anne M. Mulcahy, president and chief operating officer. "We delivered strong operational cash flow in the second quarter, and have clearly turned the corner in improving liquidity and restoring Xerox's financial strength."
Second quarter revenue was .1 billion, 13 percent lower than the second quarter of last year. Pre-currency revenue declined 12 percent from the second quarter 2000. Year-over-year pre-currency revenue declines of four percent in North America and seven percent in Europe represent in part a weakened economic environment that impacted equipment sales. A 33 percent revenue decline in developing markets is driven by the company's reconfiguration of its Latin American operations.
"Over the past year, we've taken the necessary actions to streamline our business and build on core growth opportunities in the production printing and networked office markets with a focus on color, services and solutions," said Mulcahy. "While year-over-year revenue slowed, we delivered sequential pre-currency revenue gains in North America and Europe, increased profitability in North America and continued progress in our European operations - clear evidence of the overall improvement in our core operations."
Mulcahy also said that Xerox is ahead of schedule in achieving its billion cost-reduction target with the implementation of actions that account for more than 75 percent of the year-end goal, including the reduction of 8,600 jobs worldwide since Sept. 2000.