Xerox’s interim CEO Steve Bandrowczak, said during the second quarter earnings call that the company was seeing signs of supply chain improvements and resilience.
He said given the strength in demand across Xerox products and services, and margin improvements through price increases and cost reductions, the company is maintaining its 2022 revenue and free cash flow guidance.
Bandrowczak has been president and chief operations officer at Xerox since 2018 and was named interim CEO in June after CEO John Visentin died, due to complications of an ongoing illness.
While woes of an economic downtown start to surface, Xerox is also fighting back ongoing inflation and supply chain shortages, he said.
The company’s CFO Xavier Heiss said that the effects ofits price increases will compound over time, particularly for contractual business where price increases were elected at specific times throughout the year or upon contract renewal.
“Our backlog remains strong, and we still see demand that outpaced the supplies here. And clearly, customers are still planning a gradual return to the office”, he added.
He said increased COVID-19 vaccination rates across the globe are impacting return-to-office measures and print volumes saying that there was a “gradual recovery” during the second quarter. He also expects to see a gradual recovery of print volume during the second half of the year.
Xerox reported $1.75 billion in revenue for the quarter, down 2.6 percent year-over-year for the second quarter. The company also recorded a quarterly pre-tax loss of $5 million, compared with a profit of $99 million for the same period last year. Xerox reported adjusted operating income of $35 million for the quarter, compared with $126 million for the same period the year before.