Xerox CEO To Investors: Services Growth, Document Technology Leadership To Deliver 2013 Earnings Expansion, Strong Operating Cash
At its annual investor conference to be held here today,
(NYSE: XRX) is detailing its strategy to expand earnings and deliver
long-term value for shareholders through continued growth in
At its annual investor conference to be held here today, Xerox (NYSE: XRX) is detailing its strategy to expand earnings and deliver long-term value for shareholders through continued growth in services, market leadership in document technology and its annuity-based business model. “Transforming Xerox to a services-led business — now accounting for more than half of our revenue — is creating a strong foundation for Xerox’s future,” said Ursula Burns, chairman and chief executive officer. “Our diverse services portfolio, deep industry expertise and integrated document solutions give our company a competitive advantage and give our clients unparalleled value in simplifying the complex ways work gets done. “Our investments are aligned with areas of greatest growth opportunity and we’re differentiated through our respected strength in innovation,” she added. “With a clear view on the market trends in our industries, our focus is on delivering operational improvements that expand margins, increasing our base of recurring revenue and generating strong operating cash — all of which deliver long-term value for shareholders and sustainable success for Xerox.” Building Shareholder Value: 2013 Financial Performance Expectations During the conference, the company will provide details on its expectations for 2013 financial performance, including approximately 10 percent earnings expansion and revenue in the range of flat to up 2 percent. Full-year 2013 GAAP earnings per share are expected to be in the range of $0.94 to $1.00. Adjusted earnings per share are expected to be $1.09 to $1.15. Through its cash-generating annuity revenue, Xerox expects operating cash flow of $2.1 billion to $2.4 billion in 2013. Building on its share repurchase plan, the company’s board of directors approved a $1 billion increase to the current authorization. Xerox expects to allocate at least $400 million in cash for share repurchase next year, adding to the $900 million to $1.1 billion in stock buyback planned for this year. In addition, subject to approval from its board of directors, the company will increase its dividend by 35 percent to 5.75 cents per quarter, beginning with the dividend payable on April 30, 2013.