Xerox results reveal mixed fortunes

Xerox reported a slight rise in income driven by increasing demand for colour in the office, but despite a rise in colour sales its production business was flat, hit by a decline in black and white revenues.

Production, which includes commercial print, grew equipment sales by 3%, but sales were flat overall due to a decline in consumables, service and finance revenues.

Colour equipment drove growth, primarily due to the iGen3 with a rise of 18%, but the firm's new light production black and white machine, the 4110, also helped push black and white kit sales up by 1%. Revenues for the division were 633m ($1.1bn) operating profit fell 35% to 45m.

Total revenues rose 2% to 2.3bn, operating profit rose 5% to 194m, but restructuring charges of 112m and other expenses led pre-tax income to fall 57% to 67m.

Having missed Wall Street estimates the firm's shares fell 7% on Monday when the results were released.

Story by Barney Cox