Xerox denies cash flow crisis

NEWS The story surfaced in trading circles after Xerox announced that it expects a third quarter loss of 15 to 20 cents a share when results are posted later this month. Shareholders were told their quarterly dividend will drop from 20 cents a share to five, in an effort to cut company spending by $400m a year. But a European spokeswoman for Xerox told Reuters that the company was not having cash problems, stating the company had a $7bn revolving credit line valid until October 2002. Xerox has seen its profit drop in recent years, and despite a dramatic restructuring programme, its stock market valuation plunged 85 per cent in 1999.