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Friday, 12 October, 2001, 22:30 GMT 23:30 UK
Forecast losses double at Xerox
Sign outside Xerox headquarters
Xerox lost rented equipment in the attacks
The troubled photocopier giant Xerox has admitted that its third quarter losses will be about twice as large as analysts had forecast.

The firm blames a drop in sales, currency losses and the 11 September terrorist attacks for the failure to meet targets.

But the firm's chief executive officer, Anne Mulcahy, said she was "cautiously optimistic" that Xerox could return to profitability in the last three months of the year, excluding charges for a restructuring.

"We continue to aggressively implement our cost-reduction initiatives and focus on operational improvements," said Ms Mulcahy.

Meeting debt repayments

Xerox lost business and had rented equipment destroyed in the terrorist attacks.

Two Xerox employees were killed in the 11 September atrocities.

The firm, which was plagued by rumours of bankruptcy last year, said it was in compliance with debt covenants and had $2.4bn in cash as of 30 September.

The profits warning came as the company reported preliminary results.

Full results will be reported on 23 October.

On the New York Stock Exchange, the firm lost over 9% of its value before managing to claw back most of the losses.

The stock closed the day at $7.38, down from a 52 week high of $11.35.

See also:

26 Jul 00 | Business
Xerox warning unsettles Wall Street
16 Jun 00 | Business
Warning hits Xerox shares
19 Apr 01 | Business
Xerox results suggest turnaround
04 Apr 01 | Business
Xerox delays annual report
09 Jan 01 | Business
Xerox denies bankruptcy report
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