Feeds

Xerox sees bleak 2009

Low expectations lowered

The essential guide to IT transformation

Xerox announced Friday morning that it was lowering its expectations for first-quarter 2009 earnings by 69 to 85 per cent. Its share price immediately took a 20 per cent hit, but struggled back by five per cent in time for lunch in New York.

Xerox's January and February revenue dropped 18 per cent due to slumping sales of equipment and printer-based supplies - although 5 per cent of the decline is due to what the company calls a "5 point currency impact."

The stronger US dollar has had a detrimental impact on many US companies' worldwide sales. However, Wednesday's announcement by the US Federal Reserve that it was going to pump over $1 trillion into the economy in an effort to slow the Meltdown has put the brakes on that trend.

The reason for Xerox's lowered expectations is obvious: Business buying is depressed worldwide - or, as the company puts it, there's been an "industry-wide slowdown in technology spending."

Xerox doesn't see things getting much better in the near term. In a statement, the company's chairman and CEO, Anne Mulcahy, said that "We expect that enterprise spending on technology will continue to decline this year."

As Reuters points out, less-than-encouraging words are being heard from "household names," citing news this week that FedEx's per-share earnings had dropped 75 per cent year-on-year and that Nike's per-share earnings had slumped by 46 per cent during the same period.

Although the US market may have enjoyed a mild rally in the past two weeks, the coming wave of earnings reports may remind us all of Alan Greenspan's warning against "irrational exuberance." ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned 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.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.