* Sees FY 2010 EPS $0.37-$0.47
* Sees adjusted EPS at high end of $0.75-$0.85 view
* Sees FY rev up 1-3 pct
* Shares down 4.7 percent; up 29 pct in 2010
(Adds details from meeting; CEO comment, share moves)
By Franklin Paul and Paul Thomasch
NEW YORK, May 4 Xerox Corp (XRX.N) expects
cost-cutting and the expansion of its services business to
drive full-year earnings to the high end of its 2010 forecast
range, the company said on Tuesday.
On the same day the company hosted its first general
investor meeting since closing its $6.4 billion acquisition of
Affiliated Computer Services earlier this year, Xerox said
earnings per share excluding items would be at the high end of
its forecast range of 75 cents to 85 cents for the year.
Xerox shares, which are up nearly 29 percent this year,
fell 4 percent in a broadly weaker stock market early on
Tuesday, as investors fretted the crisis in Europe could derail
the global economy recovery. [ID:N04101521]
At the meeting, Xerox repeated many of the financial
targets it set in September when the deal was announced, but
also detailed the pace of integration of ACS, which is seen as
key to the future value of Xerox.
Chief Executive Ursula Burns, who completes in July her
first year at the helm of the Norwalk, Conn.-based company,
also used the platform to promote the transformation at Xerox,
which to date is best known for its office printers.
While Xerox has long sold high-margin supplies and services
that yield more profits than its printers, its has struggled to
jump start total revenue, in part because its cost-conscious
customers have been hurt by the economy.
The ACS deal is expected to strengthen Xerox's enterprise
business, allowing it to expand from document management into
outsourcing with strongholds in government and healthcare.
Burns, who adds the role of Chairman on May 20 -- replacing
Anne Mulcahy who is retiring [ID:N30136577] -- said Xerox has
created the industry's broadest portfolio of document
"What you will see going forward is a competitively
advantaged company that can grow revenue, earn more than we
have earned in the past and increase cash," she said. "It (the
company) looks the same ... but we are not the same company
that we were, even a couple of years ago."
Xerox said the deal is on track to deliver expected cost
savings, extending efforts it made on its own to become more
Back in January, the office document management company
said it would cut about 2,500 jobs and take a related charge of
$250 million, underscoring the tepid economy in which customers
are slow to buy new equipment.
Xerox forecast 2010 net earnings per share on Tuesday in a
range of 37 cents to 47 cents on proforma revenue growth in a
range of 1 percent to 3 percent.
For 2011, it said full year revenue would be around $24
billion, with adjusted earnings per share of 95 cents to $1.05.
Analysts expected 2011 revenue of $23.3 billion with earnings
of $1.04 a share, according to Thomson Reuters I/B/E/S.
Xerox shares fell 56 cents to $10.52 in afternoon trading.
The shares have already risen from below $9 since February.
(Additional reporting by Sinead Carew; editing by Gerald E.
McCormick, Derek Caney and Andre Grenon)