Xerox has posted a second quarter net profit, helped by strong margins and aggressive cost cutting initiatives. Net income was $93 million, or 12 cents a share, compared to a loss of $101 million or 14 cents per share a year ago. Excluding costs relating to restructuring and unhedged currency, the second quarter profit was 19 cents a share. Revenue was $3.95 billion, down from $4.28 billion a year ago.
Gross margins were 42.5%, up 3.4% from last year due to operational improvements. Selling, general and administrative costs were down $110 million or 9% from a year ago.
Xerox shares were up 20% yesterday as a result of the surprising results, the first quarterly results since the company changed its accounting practices following scrutiny by federal regulators.
26-Jul-2002
