BUSINESS
Xerox Irish operation still secure
03-10-2000
by Joe Lynam
The Irish operation for Xerox is secure despite the latest in a series of profit warnings to the New York Stock Exchange (NYSE), the photocopier manufacturing giant said on Tuesday.
Operations at the Xerox Technology Park (XTP) in Dundalk, Co Louth, are still very central to the new strategic direction being undertaken by the multinational company, according to Gavin O'Brien, human resources manager for the plant.
Xerox Corporation stocks, which trade on the NYSE and form part of the composite Dow Jones Industrial Index, fell by as much as 18 percent following the statement issued after official trading closed in New York on Monday.
It warned that the expected modest profit for the third quarter would not materialise and that Xerox expects to report a USD0.15 to USD0.20 per share loss for the last period. This is the latest in a succession of poor news announcements and disappointing results over the last 18 months as Xerox fails to convince analysts of its Internet strategy.
But Xerox does have an extensive Internet strategy as well as a comprehensive R&D programme, both of which will create new markets for the company, said O'Brien. "We intend offering full document management solutions through the use of e-technology in order to provide efficient solutions to our customers."
Dundalk and Dublin are key strategic elements in the "Change for Growth" programme announced by Xerox in 1998, said a spokesman for Xerox Ireland, which employs 2,200 people.
The Dundalk XTP will manufacture a new inkjet product and employ over 2,100 people by 2003. There will also be a software development centre in the XTP, which will handle higher end operations, he said.
The Dublin unit of Xerox Ireland currently employs 1,300 in Blanchardstown and acts as the European Business Service Centre for customer support and channel partners as well as a shared financial services centre for the whole of Europe.
Meanwhile, all Xerox European financial services are to be consolidated in Dublin, said the spokesperson. "The target is to employ 2,000 in Dublin in order to serve 15 markets from here. There are already 30 nationalities working for Xerox in Dublin, 50 percent of which are non Irish."
Xerox, which is under investigation by the Security & Exchange Commission (SEC) for irregularities in its Mexican operation, announced an earnings drop of 52 percent in January this year and 68 percent second quarter income drop last July amid speculation that intense competition in its core photocopier sector from Japanese companies has cut margins in its traditionally profitable markets.
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