Xerox says it expects more cost-cutting in 2003

Office equipment company Xerox today stood firm on its view of fourth-quarter earnings before charges and said it sees "accelerated…

Office equipment company Xerox today stood firm on its view of fourth-quarter earnings before charges and said it sees "accelerated" cost cuts in 2003.

The US company, which employs 2,000 people in Ireland, said at an investor meeting that its fourth-quarter earnings estimate is "operationally" unchanged and it expects 2003 earnings of 50 cents a share to 55 cents a share. The company also said it sees a modest total revenue decline in 2003.

Last week, the company, best known for its office printers and copiers, said it would take a fourth-quarter charge of $350 million to $400 million to cover staff cuts of about 3.4 per cent of its workforce. These cuts occur over the next three months.

Xerox has been shaken by accounting scandal this year. In April, the group settled a case brought by the Securities and Exchange Commission. It paid a $10 million (€10.24 million) civil penalty, without admitting or denying the allegations, and restated pre-tax income and revenues for 1997-2001.