Xerox Gains on Job Cuts

Xerox Corp. (NYSE: XRX) picked up 21 U.S. cents to $7.08 in early trading Monday, after the company said it will cut more jobs in a bid to save more than $1 billion by the end of the year.

A plan to restructure its businesses and sell off assets is “on track,” the company said.

Xerox said it will cut 4,000 jobs in the first quarter of this year, on top of 2,000 cuts made in the fourth quarter. Additional reductions will come throughout the year, said president and chief operating officer Anne Mulcahy.

The Stamford, Connecticut-based company also reported a loss of 31 cents per share for the fourth quarter ended December 31st, before an 18 cent gain from the sale of its China operations and restructuring charges of 6 cents.

The company posted a net loss of 19 cents per share, compared with earnings of 43 cents in the year-earlier quarter. Revenue fell to $4.83 billion from $5.52 billion.

Revenue for the fourth quarter fell 13 percent from a year earlier to $4.8 billion, led by a slump in equipment sales.

Xerox said it increased research and development spending by 11 percent in the quarter to spur development of color products.

In addition to selling its China operations to its partner, Fuji, for $550 million, Xerox is negotiating with GE Capital to provide equipment financing for customers in Europe. GE Capital provided $435 million in financing earlier this month, Xerox said.

Xerox shares, which traded as high as $29.75 last March, set a 52-week low of $3.75 in December.

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