Xerox (XRX) Lowers Q1 Guidance

March 20, 2009 7:16 AM EDT

Xerox Corporation (NYSE: XRX) lowered its first-quarter earnings expectations to a range of $0.03-$0.05 per share from a range of $0.16-$0.20 per share (cons is $0.18), citing the increasingly more challenging global economic environment.

The reduction includes a 6 cent impact from Xerox’s share of Fuji Xerox’s restructuring and a lower than expected Fuji Xerox profit contribution with the balance resulting from an industry-wide slowdown in technology spending, putting pressure on revenue and earnings. Xerox’s total revenue in January and February declined 18 percent including a 5 point currency impact, largely due to lower sales of equipment and printer-based supplies.

The company said it is on track to deliver $250 million in savings throughout this year from previous restructuring actions, and has identified an additional $300 million in cost and expense reductions that will flow through to earnings and cash generation.

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