Pandemic hits Xerox earnings and sales in fourth quarter
Xerox saw a drop in profits and sales in its latest quarter.
The COVID-19 pandemic continues to have an impact on the Connecticut-based company that still has operations in the Rochester area.
Xerox saw a loss of $675 million in net income in the fourth quarter. Adjusted earnings per share of 34 cents were slightly above Wall Street estimates.
Sales, though, came in below estimates, falling nearly 7.9% in the quarter from a year ago to just under $1.8 billion for the quarter.
The impact from the pandemic has hit many businesses, and Xerox made note of that situation in the fourth quarter and full-year earnings report released on Tuesday.
The company’s statement said that the Omicron variant continued to negatively affect businesses in terms of getting people back in the office, which can impact things like printing volumes.
Xerox said that it anticipates an increase in workplace attendance in the second half of this year.
The company also noted that supply chain disruptions affected the fourth quarter, and the company expects they will remain a challenge through the first half of this year.
“Our team’s focus and dedication drove improved results in 2021 despite ongoing challenges caused by the pandemic and global supply chain disruptions,” said Xerox Vice Chairman and CEO John Visentin.
Visentin said Xerox was able to increase cash flow while investing for sustainable long-term growth.