Xerox loses $243m

Xerox earned $220 million in its most recent quarter. But a $625 million

charge to cover a massive restructuring program caused the company to suffer a

$243 million net loss in the first quarter. A year ago, Xerox earned $343

million. Sales increased 3 per cent to $4.43 billion.

Xerox is in the process of cutting 5,200 jobs and closing some manufacturing

plants. Xerox CEO Rick Thoman said the company showed improvement in several

areas that hurt performance in the second half of 1999. But he also cautioned

that some of the company's 1999 problems will continue to affect performance

this year, including increased competitive pressures and the process of

rebuilding customer account relationships following the realignment of the

company's sales force.