Battered Xerox Prints Up Disappointing Results

Earnings Scorecard
Actual	Estimated*	Year-Ago
-$0.31	-$0.30	$0.41

The ever-troubled copier maker Xerox(XRX) this morning reported a loss of 31 cents a share, missing already reduced analyst expectations by a penny. Its most current earnings are way down from its year-ago results of 41 cents a share.

Xerox is battling to get its business back in gear. It warned in December of weaker-than-expected fourth-quarter results, adding then that the company had drawn down all of an emergency credit line it had been tapping for daily operations.

This morning, the company is saying it's already announced turnaround plans, including asset sales, cost reductions and plans to exit the financing business, are on track.

Xerox said it strengthened its cash position in the fourth quarter and ended the year with more than $1.7 billion in cash. Operational improvements reduced inventory in the quarter by more than $400 million. The company said its cost-reduction plans are expected to yield more than $1 billion in savings by the end of the year. Xerox cut about 2,000 jobs worldwide in the fourth quarter, plans to cut 4,000 more employees in the first quarter and expects additional job cuts throughout the year.

Earlier this month, the company denied plans it would file for bankruptcy and was able to arrange secured financing from General Capital, a unit of General Electric(GE).

The day after Xerox announced the new financing, Credit Suisse First Boston said it believed there was substantial risk for equity investors because, without additional asset sales, the company could have difficulty meeting debt payments this year.

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