Xerox profit beats estimates as cost cuts begin to pay off
By Aishwarya Venugopal
(Reuters) - Printer and copier maker Xerox Corp reported a higher-than-expected quarterly profit as restructuring efforts ahead of its planned split into two companies helped cut costs.
The company, which is splitting to separate its printer business from its business process outsourcing unit, said it slashed about 1,300 jobs globally in the second quarter.
Xerox's total costs declined 6 percent to $4.24 billion. This included restructuring and related charges of $71 million, less than the $100 million the company had estimated in April.
Shares of Xerox, which said it was on track to meet its annualized cost savings target of about $700 million for 2016, rose nearly 4 percent in early trading on Friday.
Xerox said it expected one-time pretax separation costs of $175 million-$200 million, lower than the $200 million-$250 million it had estimated earlier.
The company had about 131,800 employees as of June-end, down about 11,800 from the end of December.
Xerox's total revenue fell for the sixth straight quarter as corporate customers reduce printing to reduce expenses and consumers shift to mobile devices.
Like rivals Lexmark International Inc and Hewlett-Packard Co , the company is focusing on its software and service businesses. Continued...