As the $19.5bn (£12.7bn) turnover group announced Q3 results showing a decline in sales of 10% to $4.3bn during the period, chairman and chief executive Ursula Burns said Xerox was considering “a range of opportunities” aimed at maximising shareholder value.
“Although we already have taken steps to accelerate cost reductions and prioritise investments to drive improved productivity and higher margins, our board determined that undertaking a comprehensive review of structural options for the company’s portfolio is the right decision at this time,” she stated.
Adverse foreign currency exchange rates also impacted its results. Sales at its Services division were down 8% to $2.4bn, while its Document Technology wing posted sales down 12% at $1.8bn. Restructuring costs resulted in a net loss for the period of $34m.
In a conference call with financial analysts, Burns was quizzed about whether the firm could do more to leverage its joint-venture with Fujifilm, Fuji Xerox.
“I think that as we look at structural options for the company’s business portfolio and capital allocation, we will look at all available levers,” Burns said.
She also tackled head-on the question of whether the entire Xerox business could be up-for-sale, and stated: “We are not currently considering the sale of the company, but all other options will be looked at as we progress through this review.”
Xerox also remains on the lookout for suitable acquisitions of small- and medium-scale, and is looking for 'tuck-in' buys to augment its Services business.
The group’s chief financial officer, Kathryn Mikells, is leaving to join drinks giant Diageo. Vice president of investor relations Leslie Varon will take over as interim CFO while the firm recruits a replacement.
Xerox’s share price fell by 3% to $10.03 after the Q3 results announcement.
