Company sees improving page volumes and record backlog but says profits were impacted by rising costs.
Beginning in the first quarter of 2022, the Company made a change to its reportable segments from one reportable segment to two reportable segments – Print and Other, and Financing (FITTLE). The Financing segment reporting is partly the result of the stand-up of this business in 2021.
Xerox reported that in the first quarter its revenues were $1.67 billion (€1.53 billion), down 2.5% year-on-year. The Print and Other segment reported revenues of $1.55 billion (€1.42 billion), down 2% year-on-year.
“Revenue was in line with expectations this quarter despite an increasingly volatile operating environment,” said Xerox Vice Chairman and CEO John Visentin. “Underlying demand for our products and services remains strong, as indicated by our growing backlog and growth in post- sale revenue. Broad-based inflationary pressure and increased logistics costs from supply chain disruption resulted in an operating loss, but we expect to offset most of these cost increases over time with price actions and additional Project Own It savings. We remain focused on executing the strategic roadmap presented at our Investor Day in February and are committed to monetising our investments in new businesses in ways that maximise shareholder value.”
Xerox maintains revenue and cash flow guidance for 2022. The guidance assumes that in the second half of the year supply chain disruption will begin to subside and return to office trends will continue to improve. The company predicts full-year revenues to be at least $7.1 billion (€6.51 billion).
