Xerox Faces Inquiry Into Mexico Business
Michael Brick
06/29/00 - 05:07 PM EDT
Federal securities regulators are investigating
Xerox's (XRX) accounting for its Mexico business, the company said Thursday.
A company spokesman, Bill McKee, said Xerox has begun its own investigation and will reports the results on July 26, when it reports its quarterly earnings. The company said in a statement that it will cooperate with a
Securities and Exchange Commission investigation.
The company said on June 16 that unexpected problems with customer receivables in Mexico could cut 5 or 6 cents a share off the quarter's earnings. That amount was unchanged, McKee said.
Xerox annually sells around $400 million of office machinery in Mexico.
John Heine, a spokesman for the SEC, could neither confirm nor deny the existence of an investigation.
Xerox's stock traded at 18 1/2 around 4:20 p.m., according to Instinet. The shares closed regular trading at 19 9/16, down 7/16 or 2.19%.
Besieged by strong competition in its highest-margin product lines, problems collecting on accounts in Mexico and upheaval in its sales force, the company ousted its chief executive last month after a failed reorganization.
