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Monday, 28 January, 2002, 16:05 GMT
Xerox reports surprise profit
Xerox chief executive Anne Mulcahy
Anne Mulcahy was upbeat about the likely 2002 results
American office equipment producer Xerox has surprised investors with a modest profit for the last three months of 2001, as cost cutting and other restructuring measures took effect.

The copier and printer maker made $108m (77m), before unusual deductions, and said it was confident of a profit for the full year 2002.

On a net basis, however, Xerox made a modest loss, and its sales were down 13% year on year.

The company blamed the effects of 11 September and the general slowdown for the plunge of sales.

Cost-cutting programme

"Today's results are all about execution - the precise execution of a turnaround strategy that has significantly strengthened Xerox's core operations while effectively positioning the company to exploit future market opportunities in its production, office and services business," said Anne Mulcahy, Xerox chairman and chief executive.

Xerox HQ
Xerox has shed thousands of jobs
The company - once one of the most successful tech firms - plunged into red more than a year ago.

In response to the economic slowdown, the company initiated a programme of job cuts, and sold billions of dollars'-worth of assets.

More than 13,000 jobs have been cut during the past year, which represented more than 15% of the company's workforce at the beginning of 2001.

Annual expenses were cut by more than $1bn.

The market welcomed the results, sending Xerox's shares up 48 cents to $10.40.

See also:

23 Oct 01 | Business
Xerox losses widen
12 Oct 01 | Business
Forecast losses double at Xerox
26 Jul 00 | Business
Xerox warning unsettles Wall Street
16 Jun 00 | Business
Warning hits Xerox shares
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