Xerox cuts 2015 profit forecast due to strong dollar
By Sai Sachin R and Anya George Tharakan
(Reuters) - Xerox Corp cut its full-year profit forecast, blaming a strong dollar, and the company reported lower-than-expected quarterly revenue as its printer sales fell and costs rose.
The company is focusing on its services business, which offers business process outsourcing and document outsourcing, as sales of printers and copiers, its mainstay for over half a century, fall for over three years.
Xerox's shares plunged as much as 14 percent to a 12-month low on Friday.
The company will take more than two years to reach its goal of getting three-quarters of its revenue from its services business, Chief Financial Officer Kathryn Mikells told Reuters.
Xerox's services business accounted for 56 percent of its total revenue in the first quarter ended March 31, up from 54 percent a year earlier.
Mikells said the company expected its services business to account for two-thirds of its revenue in "a couple of years," helped by acquisitions.
"We're expecting to do up to $900 million in acquisitions this year and early next year," she said.
Revenue from the services business rose 1 percent on a constant currency basis, while revenue from its printers and copiers business fell more than 10 percent. Continued...