Xerox Reports Rise in Profit and Revenue

Net income was $281 million, or 19 cents a share, in contrast to a loss of $42 million, or 4 cents a share, in the period a year earlier. Excluding some costs, profit was 23 cents a share. Analysts estimated 21 cents on average.

Sales climbed 16 percent, to $5.47 billion, led by services, which gained 27 percent.

Sales from equipment and supplies was little changed, which may have disappointed some investors, said Keith Bachman, an analyst at BMO Capital Markets. “It’s uninspiring,” Mr. Bachman said. “It’s a reasonable report, but it doesn’t give anybody a reason to go out and buy the stock.”

Shares of Xerox fell 63 cents, or 5.81 percent, to $10.22.

The company, based in Norwalk, Conn., has been reducing costs, including 5,000 job cuts last year, as it integrates Affiliated Computer Services. The company may save more than $375 million in three years as a result of the takeover, Xerox has said.

Xerox said profit this quarter, excluding some costs, will be 23 cents to 26 cents a share, a larger range than the company typically gives for its quarterly forecasts as it assesses its business in Japan. That compares with analysts’ estimates of 25 cents.

The company, whose Fuji Xerox joint venture manufactures and distributes copiers and printers for Japan, China and other countries in the Asia-Pacific region, said it expects last month’s earthquake in Japan to affect its equity income this quarter and the third quarter.

While Fuji Xerox factories were not damaged, several of its suppliers were affected by the earthquake, the chief executive, Ursula M. Burns, said. The company is making alternate plans for supplies and expects to have increased supply chain costs, she said.