Xerox fourth-quarter profit tops Street view, shares up

Thu Jan 24, 2013 12:00pm EST
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By Nicola Leske

(Reuters) - Xerox Corp reported quarterly earnings slightly above expectations on Thursday and reiterated its full-year targets as it restructures parts of its business in its effort to become a broader technology company.

Chief Executive Ursula Burns said on an analysts' call that Xerox was going through "a seismic shift" and "2012 was a year of alignment".

Xerox is at pains to shed its printer company image, wanting instead to be known for its services business, which it entered with the 2009 acquisition of Affiliated Computer Services Inc for $5.5 billion.

In the fourth quarter of 2012 Xerox began a restructuring program focused on the services business, which manages anything from toll systems to healthcare programs.

Lynn Blodgett, who heads the services unit, said Xerox had made good progress, but there was still cost cutting to be done.

But Burns said she was optimistic the company was well equipped to meet its targets even though she did not expect economic conditions to improve much.

"I am upbeat, I am very confident in the guidance we have," Burns said.

"This is not going to be a walk in the park. The environment hasn't changed that dramatically to make it that much better," she added.   Continued...