Rank Xerox Corp has reported third quarter net profit up 19% to $381m, or $1.05 a share but nine month figures were hit hard by charges for its employee lay-offs. Under its restructuring program, announced in April, Xerox axed 1,700 employees during the third quarter, bringing the total staff loss to 3,200. Xerox said approximately 9000 employees in all will lose their jobs under the scheme. Digital product revenues grew 38% in the quarter, exceeding revenues from its traditional analog products. Xerox said outstanding placements of its digital mono copiers and network printers sold through indirect channels and strong growth of the products in the high-end, production printing and publishing market, among other things, contributed significantly to the digital revenue growth. For the nine months, the company recorded a net loss of $219m, after a $1.1bn restructuring charge, compared with a $927m profit last time. Revenues were up 7% at $13.7bn. Sales from analog copiers declined 15%, which Xerox attributed to weakness in worldwide economic conditions, increasing price competition and customers’ transition to digital technology. Operating profit margin improved by 1.7% for the quarter, which Xerox said reflected the restructuring program announced in April.
