Norwalk’s Xerox Corp. said Tuesday that net income fell 12 percent in the third quarter as growth in the company’s services business only partly offset declines in the sale of equipment, supplies and related products, The Associated Press reports.
“Our third-quarter performance aligns with shifts in our business as services become a larger proportion of our revenue, and reflects the dynamics of a challenging economy that is creating cost pressures for large enterprises and governments,” Xerox CEO Ursula Burns said.
Its shares fell more than 7 percent in morning trading.
Net income was $282 million, or 21 cents a share, for the period ended Sept. 30 compared with $320 million, or 22 cents a share, a year earlier.
After adjustments for one-time charges, the company earned 25 cents a share, in line with Wall Street’s expectations.
Revenue fell 3 percent to $5.4 billion, just below the $5.5 billion forecast by analysts surveyed by FactSet. Adjusting for fluctuations in currency-exchange rates, revenue fell 1 percent. A weaker euro, for instance, means that sales in Europe get converted into fewer dollars.
Revenue from services grew 5 percent, while revenue for equipment and other technology fell 10 percent before adjusting for currency.
Xerox’s stock fell 54 cents, or 7.7 percent, to $6.49 in morning trading Tuesday. Its shares have traded in a tight range of $6.36 to $8.84 over the past year.
In the current quarter, Xerox expects adjusted earnings of 33 cents to 35 cents per share. Analysts were expecting 34 cents. Xerox forecast full-year adjusted earnings at $1.07 to $1.09, in line with expectations of $1.08.
