Xerox Corp. reported a major swoon in profits for the first quarter, down 85 percent to $34 million or $0.03 per share, compared with the first quarter of 2015’s net income of $225 million or $0.19 per share. On an adjusted basis, the company earned $0.22 per share.
The Norwalk-headquartered Xerox reported a 4 percent drop in revenue to $4.28 billion for the period ending March 31; costs and expenses were up 1 percent to just below $4.3 billion.
The company announced in February its plan to divide itself into two businesses, with its printer and copier unit separate from its business services unit; it estimates one-time costs of that move at $200-250 million this year, excluding potential tax costs.
At the same time, it expects restructuring and related costs of $300 million in 2016 as it implements a $2.4 billion, three-year strategic transformation plan. That plan involves Xerox refocusing on its services business, which includes business process and document outsourcing, as opposed to printer and copier sales, which have been on the decline for over four years.