Feeds

Xerox sees bleak 2009

Low expectations lowered

Boost IT visibility and business value

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." ®

Build a business case: developing custom apps

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
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
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
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.