Poor Xerox results meet low expectations

Photocopier company Xerox has issued a warning that profits in the second half of the year are likely to be much less than predicted by analysts.

Chairman Paul Allaire said in a statement "There is a need for a significant downward adjustment to current second-half expectations,"

Xerox has reported that second quarter results matched the low expectations given by analysts due to the costs incurred investigating accounting irregularities in Mexico.

Net income for quarter end 30 June 2000 was $145m, down $303m (68 per cent) from $448m for the same period last year with revenue also down four per cent to $4.7bn.

The Securities and Exchange Commission (SEC) is still investigating accounting issues related to the company's Mexico business.