(RTTNews) - Printer and copier company Xerox Corp. (XRX: News ) on Thursday reported a 52% year-over-year drop in profit for the third quarter, hurt by a 16% decline in quarterly revenues on lower demand amid the continued weakness in global economy. Earnings per share for the quarter also dropped, but topped analysts' expectations by two cents. The company also provided earnings forecast for the fourth quarter, in line with consensus estimate, and raised its earnings outlook for the full year 2009.

Third Quarter Results

The Norwalk, Connecticut-based company reported net income of $123 million or $0.14 per share for the third quarter, 52% lower than $258 million or $0.29 per share in the prior-year quarter.

On average, six analysts polled by Thomson Reuters expected earnings of $0.12 per share for the third quarter. Analysts' estimates typically exclude special items. The company had forecast earnings per share in the range of $0.10 to $0.12 per share for the third quarter.

The results for the latest quarter include a charge of $9 million or $0.01 per share related to Xerox's share of Fuji Xerox's after-tax restructuring, and an $8 million or $0.01 per share related to costs associated with the acquisition of Affiliated Computer Services.

Total revenues for the quarter declined 16% to $3.68 billion from $4.37 billion in the same quarter last year, but marginally topped six Wall Street analysts' consensus estimate of $3.63 billion. Revenues include a 2 percentage point negative impact from currency, and were negatively impacted by continued weakness in global economy.
Sales revenues for the quarter dropped 24% from the prior-year quarter to $1.56 billion, as well as service, outsourcing and rental revenues declined 9% from a year ago to $1.94 billion. Finance income also decreased 10% to $178 million from the same quarter last year.

In a statement, chief executive officer, Ursula Burns said, "Our third-quarter performance reflects our continued disciplined approach to managing cash and reducing costs. As a result, we exceeded our expectations for earnings and operating cash flow, and are benefiting from operational improvements that are mitigating the economic challenges."

Peer Performance

Among Xerox's peers, Palo Alto, California-based Hewlett-Packard Co. (HPQ: News ) is scheduled to report its financial results for the fourth quarter on November 23. The company expects fourth-quarter GAAP earnings of $0.97 per share and non-GAAP earnings of $1.12 per share, and expects revenue to be up about 8% sequentially, implying fourth quarter revenue of about $29.65 billion. Analysts currently expect the company to report earnings of $1.12 per share for the fourth quarter, on revenues of $29.77 billion.

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