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Xerox beats Street
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January 25, 1999: 7:20 p.m. ET
Copier maker posts higher profit, boosts dividend and splits stock
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NEW YORK (CNNfn) - Xerox Corp. reported better-than-expected fourth quarter profits Monday and announced an increase in the company's dividend and a two-for-one stock split.
The Stamford, Conn.-based maker of copy machines and other document processing equipment earned $615 million, or $1.69 a diluted share, up from $525 million, or $1.46 a share a year ago. Revenues rose 7 percent to $5.8 billion. According to First Call, analysts had expected the company to earn $1.67 a share.
"We delivered another record quarter, reflecting strong double-digit earnings growth consistent with our objectives, even though pre-currency revenue growth - at 7 percent - was clearly affected by some weaker economies," Xerox Chairman and Chief Executive Officer Paul Allaire said in a statement.
Xerox (XRX) said revenues grew 11 percent in the United States and 8 percent in Europe, while weakness in Brazil and Russia alone reduced total pre-currency revenue growth by 2 percentage points in the quarter.
Digital product revenues grew 33 percent in the quarter and represented more than half of the company's revenues for the first time. Black-and-white light lens copier revenues declined 16 percent in the quarter.
The two-for-one stock split will be effective for shareholders of record on Feb. 4 and distributed on Feb. 23. The quarterly dividend will increase 11 percent to 20 cents per share on a post-split basis, payable on April 1 to shareholders of record on March 5.
For the full year 1998, diluted earnings per share from continuing operations, before a charge for the restructuring program, rose 16 percent to $4.67, and net income increased 17 percent to $1.7 billion on the same basis. Including the restructuring charge and discontinued operations, Xerox reported net income of $395 million, or $1.05 per share, for the year. Revenues rose 7 percent to $19.4 billion.
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Xerox
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