Xerox made a loss in the second quarter and expects its third-quarter results to be affected by the economic climate.


But president and chief operating officer Anne Mulcahy expected the second half of the year to be profitable although it might not happen until the fourth quarter.


In the second quarter it made a net loss, including one-off charges related to the disposal of its SoHo business and restructuring charges, of 197m ($281m). Revenue fell 13% to 2.9bn.


Sales of the DocuTech remained stable and held market share. Colour products grew 6%.


Discussions over the sale of non-core units, a joint venture for PARC and the outsourcing of some manufacturing continue. It also expects to have moved from in-house to third party finance in North America and some European countries by the end of the year.


Shares remained steady at 5.60.


* Xerox has announced a new method for creating colour toner, which it claims will result in costs nearer monochrome printing and quality to match offset.


Story by Barney Cox