NORWALK, Conn., Fri Jul 20, 2012 – Xerox Corp., best known for its office copiers and printers, cut its full-year profit target on Friday after it reported lower second-quarter earnings and revenue, bracing for continued tough economic conditions in Europe.
The company said it expected revenue to remain weak in its technology business, which includes document systems, supplies, technical services and financing of products.
Xerox forecast 2012 earnings per share of $1.07 to $1.12, excluding special items. Previously it had aimed at $1.12 to $1.18, and analysts had estimated $1.11.
Xerox stuck to its 2012 operating cash flow goal of $2 billion to $2.3 billion.
In the second quarter, Xerox said, the weak macroeconomic environment resulted in a 4 percent constant-currency decline in its technology revenue.
Overall, quarterly revenue fell 1 percent to $5.5 billion, below the analysts’ average estimate of $5.59 billion.
Second-quarter earnings per share were 26 cents, excluding items, in line with analysts’ expectations and down a penny from a year earlier.