Xerox Posts 52 Pct Drop In 3Q Earnings

ANDREW VANACORE

NEW YORK (AP) — Xerox Corp.'s latest quarterly results showed signs that business activity around the world remains muted and companies are still cautious about spending on technology.

The Norwalk, Conn.-based company posted a 52 percent drop in third-quarter earnings, though cost cutting moves put in place last year helped Xerox boost its 2009 adjusted profit forecast above Wall Street expectations.

Xerox shares rose 26 cents, or 3.3 percent, to $7.97 in midday trading.

On a conference call, Xerox CEO Ursula Burns said, "We have not seen a meaningful shift towards increased spending on technology." Burns, who took over the top job at Xerox from Anne Mulcahy in July, said companies are waiting for "steady" improvement in the economy before they invest more.

Companies are making fewer copies and going for longer before upgrading older copiers and printers. Business is even more constrained in developing markets because of limited access to credit.

Xerox's biggest source of income, the so-called "post-sale" revenue that it makes providing ink, paper and other supplies, dropped 11 percent. Equipment sales fell 29 percent.