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David Merkel
guruek
Articles (5982) 

Investment Guru Ownership of Xerox Corp.

Xerox Corp: Profit by Cutting Cost Aggresively

October 22, 2009 | About:
(GuruFocus, October 22, 2009) Business equipment vendor Xerox Inc. reported quarterly result this morning. The company reported third-quarter total revenue of $3.7 billion, down 16 percent from third-quarter 2008 including a 2 point negative impact from currency. Net income was$129 million , down 52% from a year ago.

In the press release, the company emphasized that third-quarter operating cash flow was $610 million. Through the third quarter, the company has generated $1.2 billion in operating cash flow, and, as a result, has increased its expectation for the full year to $1.7 billion. Xerox ended the third quarter with a cash balance of $1.2 billion. Total debt was down $938 million through the first three quarters, and the company is on track to reduce total debt by more than $1 billion this year.

The company prides itself of cutting costs aggressively. The company laid off 3,000 people and the CEO vowed to continue to run a tight ship unless the economy turns around:

Watch the video of Bloomberg interview with CEO Ursula Burns:



Guru Ownership

Xerox Corp. is owned by 5 Gurus.

1 Guru Increased Positions in XRX:

Dodge & Cox owns 122,968,904 shares , an increase of 13.36% from the previous quarter. This position accounts for 1.19% of the $66.88 billion portfolio of Dodge & Cox.

4 Gurus Kept Positions in XRX Unchanged or Slightly Adjusted:

Jean-Marie Eveillard owns 80,000 shares , which accounts for 0.01% of the $8.91 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC.

Charles Brandes owns 30,411,696 shares , which accounts for 1.08% of the $18.33 billion portfolio of Brandes Investment.

David Dreman owns 33,353 shares , which accounts for 0.01% of the $3.12 billion portfolio of Dreman Value Management.

Robert Olstein owns 1,914,700 shares , which accounts for 2.66% of the $467 million portfolio of Olstein Financial Alert Fund.

1 Guru Sold Out XRX: Bill Nygren sold out his holdings in the quarter that ended on 06/30/2009.

There has been no insider trading activity, buying or selling, with the company in the past 6 months.

About the author:

guruek
David J. Merkel, FSA, CFA, is the Chief Economist and Director of Research of Finacorp Securities. His specialty is looking at the interlinkages in the markets in order to understand individual markets better. He holds bachelor’s and master’s degrees from Johns Hopkins University. In his spare time, he takes care of his eight children with his wonderful wife Ruth.

Rating: 2.4/5 (5 votes)

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