Xerox sees a loss in 1st quarter; cites supply chain and inflationary factors
Xerox is reporting 1st quarter earnings, and the numbers released early Thursday show the company experienced an operating loss in the quarter.
The company reported a loss of $56 million compared to a $39 million profit at this time last year.
Adjusted earnings-per-share showed a loss of 12-cents, compared to a profit of 22-cents-per-share at this time last year.
Xerox Vice Chairman and CEO John Visentin said that the loss is releated to “broad-based inflationary pressure and increased logistics costs from supply chain disruption."
But Visentin said the company expects to offset the cost increases it faced by taking action on prices and seeing additional savings at Xerox over time.
He did say that underlying demand for Xerox products and services remains strong.
Xerox reported more than $1.6 billion in revenues for the 1st quarter, down slightly from a year ago.
Xerox is maintaining its current guidance for revenue and cash flow this year.
The company said that it expects supply chain constraints to begin easing in the second half of this year. Xerox also anticipates a “broader return of employees to the office” in the second half of the year.
That’s a situation that could improve Xerox’s equipment and printer supply sales numbers.