Feeds

Debt-ridden Xerox promises ‘aggressive turnaround’

Bluechip to pauper

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

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. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.