Xerox has decided not to pay its quarterly dividend for the first time in its 53-year history, in line with its plan to return to profitability by the end of the year.


Previously, Xerox had paid five cents per common share, but the company said the decision was taken to save 100m ($140m) and was not the result of any unforeseen second-quarter developments.


Xerox chairman and chief executive Paul Allaire said: After serious deliberation, the board of directors chose to eliminate the dividend, a decision that contributes to the progress Xerox is making in restoring its financial strength and helps to provide the flexibility required to build on
the turnaround plan.


Allaire added that Xerox would consider the reinstatement of dividends when it returned to profitability, which it has predicted to be by the end of the year.


Xeroxs ongoing cost reduction and asset disposal programme has released around 1.42bn, and included the cash sale of half its stake in Fuji Xerox to Fuji Photo Film for 886m, along with its Nordic lease receivables to Resonia for 255m.


Last month Xerox cited a lack of investment as its reason for closing its small office/home office (SOHO) business.
l Xerox has appointed former Guardian circulation director David Owen as its European director of newspaper publishing.


Owen has taken over responsibility for the development of the Xerox Newspaper Network in Europe, which will be launched over the coming year.
Digital printing technology allows papers to compete with online news services in an extremely flexible and cost-efficient way, said Owen.


Story by John Davies