Xerox: Past Customer Inventory Levels Not Coming Back
April 24 2009 - 10:59AM
Dow Jones News
Xerox Corp. (XRX) Chief Executive Anne Mulcahy said that
customers have cut the amount of supplies they hold in inventory
and won't be returning to those levels.
"We're not counting on a return to the past in any way," Mulcahy
said in a conference call to discuss first-quarter earnings.
"People are going to manage with less for some time to come."
On Friday, Xerox cut its full-year earnings target.
Mulcahy said that developing markets, especially Russia and
Eurasia, had hurt business as customers are unable to access
credit. However, she added that Xerox's leasing business in the
U.S. and Western Europe "plays well in touch economic times,"
adding that they haven't moved to offer aggressive financing
strategies such as no-interest leases.
Xerox shares were recently up 5.8% to $6.07.
-By Jerry A. DiColo; Dow Jones Newswires; 201-938-5670;
jerry.dicolo@dowjones.com