Xerox's 2Q Profit More Than Doubles

The Stamford, Conn.-based maker of copiers and printers said Friday it earned 21 cents per share for the April-June period, compared with net income of $86 million, or 9 cents per share, for the same period a year ago.

The results beat the consensus estimate of 17 cents per share of analysts surveyed by Thomson First Call.

Revenue in the second quarter was $3.85 billion, down 2 percent from $3.92 billion a year ago. Xerox attributed the drop to a decline in sales of older light-lens technology and weak performance in Latin America.

About two-thirds of all equipment sales in the second quarter came from products launched in the past two years, Xerox said. Revenue from color products grew 17 percent in the second quarter and is a key part of the company's growth strategy.

"Market demand for new systems and specialized services as well as a clear focus on providing smart document management for businesses small to large, all delivered through a flexible cash-generating business model, resulted in another quarter of earnings that exceeded our expectations," said Anne M. Mulcahy, Xerox chairman and chief executive officer.

Xerox raised its profit forecast for the year to 80 to 84 cents per share, up from earlier expectations of 67 to 72 cents per share. Analysts were expecting 73 cents.

Mulcahy said Xerox expects earnings of 11 cents to 15 cents per share in the third quarter.

For the first half of the year, Xerox reported net income of $456 million, or 46 cents per share, on revenue of $7.68 billion. For the same period last year, Xerox had profits of $21 million, less than one cent per share, on revenue of $7.677 billion.

In early trading on the New York Stock Exchange, Xerox shares rose 67 cents, or 5 percent, to $13.98.

Copyright © 2004 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.