Feeds

Debt-ridden Xerox promises ‘aggressive turnaround’

Bluechip to pauper

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Xerox, the bluechip-to-pauper imaging business, is to tackle its $18bn debt through an "aggressive turnaround plan".

It says it will slash running costs by $1bn and will
will raise $2bn -$4bn through asset disposals. Enough to make employees dizzy - but is it enough to satisfy creditors and shareholders? And why did the board take so long to come up with a plan to "fundamentally resize" the company's asset base?

The spotlight fell on Xerox recently after it was revealed that the company had drawn down money from a $7bn credit line. Analysts blame a botched sales reorganisation for much of the company's present predicament.

A measure of Xerox's financial weakness is its intention, announced today, to withdraw from the equipment financing business. Lease financing is where companies such as GE Capital and IBM make hay, but obviously it needs a company with very deep pockets to compete successfully with the books.

Xerox also said today that it was "actively engaged in discussions to sell the company's China operations, a portion of the Xerox ownership in Fuji Xerox, Xerox Engineering Systems, and its interest in spin-off companies such as ContentGuard and Inxight".

Who's going to want Fuji Xerox - except Fuji?

Xerox's announced its plans to reorganise along with today's Q3 figures, which show an operational loss of $128m,and a net loss of $167m, compared with net income of $339 million for Q3, last year. The net loss contains a provision $55m to cover a bad debt related to its Mexico operation. Q3 sales were $4.5bn, four per cent down on the $4.63 billion recorded for the same perid last year. ®

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.