Xerox's profit tops estimates on lower restructuring costs
Reuters
Published Jul 29, 2016 07:29AM ET
Xerox's profit tops estimates on lower restructuring costs
(Reuters) - Xerox Corp (NYSE:XRX) reported a higher-than-expected quarterly profit as the printer and copier maker recorded lower restructuring charges.
The company, which is splitting into two to separate its printer and business process outsourcing businesses, took $71 million in restructuring and related charges in the second quarter, less than the $100 million it estimated in April.
The company also cut its estimate for one-time pretax separation costs to $175 million-$200 million from $200 million-$250 million.
Xerox left its full-year estimate for restructuring and related charges unchanged at about $300 million and said it was on track to meet its annualized cost savings target of about $700 million.
The company had taken $157 million in restructuring charges in the year-earlier quarter.
Xerox also said on Friday that it cut about 1,300 jobs globally in the quarter ended June 30.
Net income from continuing operations rose about 45 percent to $155 million, or 15 cents per share.
Excluding items, Xerox earned 30 cents per share, beating the average analyst estimate of 25 cents, according to Thomson Reuters I/B/E/S.
Revenue fell 4.5 percent to $4.39 billion, in line with the average estimate.
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Written By: Reuters
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