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Xerox beats lower estimates
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April 25, 2000: 7:55 a.m. ET
But copier maker's 1Q results well below year earlier due to restructuring
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NEW YORK (CNNfn) - Xerox Corp. reported sharply lower first-quarter earnings Tuesday, the result of an ongoing internal restructuring program, but still managed to exceed analysts' lowered expectations.
The Stamford, Conn.-based company, the world's No. 1 copier manufacturer, said it earned $220 million, or 30 cents per share, during the quarter excluding one-time charges, well off the $343 million, or 48 cents per share, it earned a year earlier.
However, the profit still surpassed the consensus analyst estimate, as compiled by First Call Corp., of 25 cents per share. Analysts had lowered their earnings estimates after the company warned in January of a massive pending restructuring charge it planned to take during the first half of this year.
Xerox (XRX: Research, Estimates) ultimately took a $444 million aftertax charge during the first quarter related primarily to major restructuring program unveiled last month, that will result in the elimination of 5,200 jobs and the closing of several factories.
That charge helped push the company's net loss for the quarter down to $243 million, or 38 cents per share.
 Revenue for the quarter rose 3 percent to $4.43 billion as the company saw increased sales overseas, particularly in developing markets.
However, the company was hurt by adverse currency exchange ratios, which reduced overall earnings by more than 5 cents a share. Also affecting the results were increased competitive pressure and the lengthy process of rebuilding customer account relationships hurt by the company's decision to realign its sales force earlier this year.
Company officials said the continuing realignment resulting from that effort will continue to hurt second-quarter earnings -- although the company expects improved results during the second half of the year.
Xerox shares shed 15/16 to close at 24-1/8 Monday. 
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Xerox Corp.
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