NEW YORK (Reuters) - Xerox Corp , a supplier of office printing equipment and related services, posted weaker-than-expected quarterly profit, as cautious spending plans by its largest customers hurt profit margins.
The world's top supplier of digital printer and document management services also said it will accelerate cost cutting plans, and will take a $400 million charge in the fourth quarter.
Net income was $258 million, or 29 cents a share, versus $254 million, or 27 cents a share one year ago.
Excluding special items, such as the settlement of certain tax benefits and a restructuring charge, the profit was 26 cents a share, according to Reuters Estimates.
Analysts had expected a profit of 28 cents a share, according to Reuters Estimates.
The weak U.S. economy has spurred some clients to become hesitant to purchase higher-end technology. As a result, the company has marked increased sales of lower-priced products, hurting gross margins.
XEROX (XRX.NY) which earns about 70 percent of its revenue from supplies and services sold to repeat customers, said so-called post sales revenue rose 3 percent, while equipment sales declined 3 percent in the third quarter.
Shares of the company, which competes with Canon Inc <7751.T> of Japan and Heidelberg
(Reporting by Franklin Paul; Editing by Derek Caney)
