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Xerox changes tack after decline in printer business
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International print company Xerox has seen a decline in its profits and has taken steps to focus its efforts on business services instead.
The US company is famous for its business printer services, but its revenue fell by £1.4bn (9 per cent) in the first quarter and is expected the fall even further by the second quarter.
In 2009, Xerox entered into the business services sector when it purchased Affiliated Computer Services Inc. The company paid £36.4bn for ACS, which was the most it had ever spent on a deal.
Xerox outlayed plans to restructure the company in 2012 and has now geared up its efforts in order to reach its target to begin providing more business services rather than printer and photocopying products.
The CEO of Xerox, Ursula Burns, said: “Europe remains weak. US remains stable, but weak. We have not seen a pickup in the US.”
“We did see a slowdown, a bit of a slowdown, in some developing market economies. But our business model is fairly resilient in the developing markets.”
Despite leaving the Inkjet market, Xerox’s rival Lexmark beat its first-quarter expectations for profits and it expected to finish the second quarter 12 per cent above projected figures.
Xerox will slow down its printer production in order to focus more on business services, although the company does not expect to see many changes with its revenues until 2014.
