The firms pre-tax profits fell 5.7% to 97.9m ($166m) on total sales of 2.2bn, down 1.6%. However, chairman and chief executive Anne Mulcahy was encouraged by progress this year and confident that the growth in equipment sales would offset any continuing economic weakness in its full-year results.

Black-and-white installations rose 14% during the quarter, while colour grew 8%, led by demand for the DocuColor iGen3 and 6060 digital presses. Overall colour revenues grew 15%, with colour equipment sales representing over 25% of its total equipment revenue.

Colour continues to be a key driver of Xeroxs growth strategy as the high volume of pages printed on Xeroxs colour systems flows through to post-sale revenue. This is a clear indication of the strong foundation were building for future growth, said Mulcahy.