Xerox sales and profits tumble in Q1

Xerox has announced Q1 sales down 14% and said the Covid-19 pandemic had an “immediate impact” on its business globally.

Visentin: Xerox is applying its manufacturing and R&D expertise to help save lives
Visentin: Xerox is applying its manufacturing and R&D expertise to help save lives

The manufacturer, which scrapped its $35bn (£28bn) hostile takeover bid for HP at the beginning of this month, also said that it was withdrawing 2020 financial guidance “due to the high level of economic uncertainty and disruption caused by Covid-19”.

Q1 sales fell 14.7% to $1.68bn, a reduction of 13.9% on a constant currency basis.

Operating profits slumped by 63.6% to $87m from $239m, and the business posted a pre-tax loss of $5m.

Chief executive John Visentin said he was incredibly proud of the Xerox team’s dedication and ingenuity during the virus crisis.

The business has mobilised to make much-needed products to help combat the virus crisis including low-cost ventilators, hand sanitiser and face masks.

“During this unprecedented time, we are committed to doing everything in our power to protect our employees, customers, partners and society, because we all have a critical role to play battling the Covid-19 pandemic,” Visentin stated.

“While Xerox saw an immediate impact to our business due to the rapid implementation of lockdown measures globally, the disciplined approach we implemented over the last two years provided a foundation to move quickly to preserve cash, continue operations, provide support to our many clients on the frontlines, and apply our manufacturing and R&D expertise to help save lives. I’m incredibly proud of the Xerox team’s dedication and ingenuity during this extraordinary time.”

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