Xerox profits rise by 15% to €174m

Xerox, the office equipment maker which employs 1,700 people in the Republic, has posted profit growth of 15 per cent for the last quarter of 2004.

The firm reported buoyant demand for digital colour printers and document servers.

Net income, after preferred dividends, rose to $226 million (€174 million), or 24 cents per share, from $197 million, or 22 cents per share a year earlier.

Consensus analyst expectations had pointed towards a profit of 23 cents per share.

Xerox does not break down figures for its Irish operations but the firm is believed to have posted a solid performance in the Republic for last year.

Xerox has two main Irish operations centres. It employs 1,250 people at a customer support centre in Ballycoolin, north Dublin, and 450 people in a manufacturing plant in Dundalk, Co Louth. Xerox cut 500 jobs in Dundalk four years ago after a round of cost-cutting.

Revenues across the group were almost flat at $4.33 billion in the final quarter, including a benefit of three percentage points from dollar weakness.

Equipment sales grew by about 3 per cent and revenue from lucrative colour systems surged by 21 per cent.

Xerox has been working aggressively to sell digital colour copiers and high-end printers, which reap more profits through related sales of supplies and service contracts.

Growth was slower in sales of older "light lens" machines, but the firm's chief executive, Ms Anne Mulcahy, said this segment represented just 5 per cent of group business. - (additional reporting, Reuters)