Supply chain constraints hit Xerox

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Xerox says that second quarter revenue from technology, representing the sale of document systems, supplies, technical service and financing of products, was flat or down four per cent in constant currency as a result of supply constraints resulting from the natural disaster in Japan.

The company said the impact on costs and revenue from the supply chain-related challenges were expected in the second quarter and that the situation was improving.

Ursula Burns, Xerox chairman and chief executive officer, said “We’re seeing steady progress and making all the necessary investments to respond to customers’ needs. As a result, we are on track to reduce backlog while meeting new demand in the third quarter, and we remain confident we’ll return to normal operations in the fourth quarter.”

Overall, the group’s second quarter revenue of $5.6 billion was up two per cent – or down one per cent in constant currency.

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