Xerox's troubles deepened yesterday as the company warned that its earnings were likely to disappoint, and said it had exhausted a $7 billion (€7.76 billion) credit line.

The copier and printer manufacturer, which employs 2,300 people in Dublin and Dundalk, said yesterday that it was negotiating with banks for a new round of bridge financing. The company's shares slid on the news, losing 18.75 per cent to $4.81. They are down from a 52-week high of $29.75 in March.