DIGITAL digest 5-01

In addition, Xerox has made steady progress in reducing costs and re-establishing profitability by taking $1 billion out its cost structure. As a result of these recent moves, Xerox is anticipating a first quarter loss that was similar to the fourth quarter of 2000.

Mulcahy believes that her company will see improvement as it moves forward, with a return to profitability in the second half and for the full year of 2001. At the heart of the turnaround is the building of what she calls the new Xerox.