Xerox sees profits rising 10 to 15 percent in 2006

Xerox expects its profit to rise 10 percent to 15 percent next year.

Xerox, one of the world's largest printer makers, expects to increase its earnings per share by 10 percent to 15 percent next year in part by capturing new growth opportunities such as color printing, the company said in a Monday statement.

The company expects to expand its share of the US$112 billion document market by driving adoption of color printing across businesses, increasing the size of its digital high volume printing business and leading the services market for document management.

For the full year 2006, Xerox expects revenue to grow 3 percent compared to 2005, while earnings per share will reach a range of US$1.00 to US$1.07 per share.

The increase in color printing, a market Xerox expects to double by 2009, is one area the company expects to lead revenue growth.

The company sees color printing as imperative to today's businesses, for personalized, colorful materials such as catalogs, financial statements and user guides.

Revenue and gross profit from color pages are five times greater than black and white, the company said. And since less than 7 percent of Xerox pages are printed on color devices, the growth opportunity is "huge," Xerox said.

Innovation will also help boost its top line, as the company continues to generate a steady stream of products, the company said. Xerox has introduced 49 new products so far this year.

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