Canon signs global partnership with Volkswagen for managed print services

 

May 14, 2014
Canon Inc.
TOKYO, May 14, 2014-Canon Inc. announced today that the Company has signed a global service agreement with German automobile manufacturer Volkswagen AG for the provision of multifunction office systems and solutions. Over the next few years, Canon will serve as a global partner to Volkswagen, providing managed print services through Canon multifunction office systems and solutions to Volkswagen group operating bases worldwide.

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Through the comprehensive agreement, Canon will deliver Canon multifunction office systems and laser printers to global Volkswagen group offices and factories and provide assorted solutions and services. About the partnership, Mr. Andreas Wiedemann, Head of Printing Service Governance, Volkswagen AG, said, "VW are very pleased to be working with Canon for the supply and management of our printing requirements across our sites globally."
Enabling Canon to win this major account was its advanced technological capabilities and highly reliable equipment, which make possible the same solutions in any region around the world, as well as the new development of applications tailored to meet unique customer needs. Another factor contributing to Canon's win was the Company's proactive initiatives aimed at protecting the environment, including efforts to develop products that deliver high environmental performance.

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In recent years, as business machine suppliers have had to satisfy the increasing office equipment demands of global corporate customers, the ability of these suppliers to provide unified services and information security that meet international standards, along with centralized purchasing, have gained in importance as selection criteria. Additionally, social contribution activities and other corporate social responsibilities have also been attracting increased attention, with companies choosing their suppliers based not only on product performance, but also the corporate bearing and initiatives of the supplying company.

In 2004, Canon launched the Global Account Management project as a dedicated organization within the Company tasked with responding to the business machine needs of customers with global business operations. In January this year, Canon renamed the organization the Canon Global Services Division and has focused on enhancing the Division's service offerings, including the launching of a dedicated website. The website, accessible in some 23 countries worldwide, highlights the benefits of Canon Global Services and will be updated with the latest pertinent information.
Canon will continue its efforts to provide customers with multifunction office systems and solutions tailored to meet the ever-evolving needs of the modern workplace.
 Japan

Mixed 4Q for Xerox

by Zacks Equity Research

January 24, 2013 | Comments : 0 Recommended this article: (0)

XRX | LXK | PBI | CAJ

Xerox Corp. (XRX - Analyst Report) reported GAAP earnings of $335 million or 26 cents per share in the fourth quarter of 2012 compared with $375 million or 26 cents in the year-ago quarter, driven by decrease in sales in the Technology segment.. Adjusted EPS in the quarter stood at 30 cents, ahead of the Zacks Consensus estimate by 2 cents.

For fiscal 2012, GAAP earnings stood at 88 cents, down 2% year over year. Adjusted earnings stood at $1.03 per share for the full year, in line with the Zacks Consensus Estimate

Revenues in the quarter declined 1% (flat in constant currency) year over year to $5.9 billion, missing the Zacks Consensus Estimate of $5.8 billion. For fiscal 2012, revenue stood at $22.4 billion down 1% year over year.

Operating margin was up 0.3 basis points to 10.3% in the fourth quarter, driven by savings from restructuring and lower selling and administrative expenses. Gross margin dipped 0.7% basis points to 31.5% in the reported quarter. This decrease was driven primarily by the higher overall mix of Services revenue.

Segment Performance

Revenues from the Services segment, which include Document Outsourcing (DO), Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO), rose 7% to $3.0 billion in the fourth quarter (with no impact from currency), driven by higher revenues from all three subdivisions.

Growth in government healthcare, transportation businesses and customer care helped BPO revenues improve 8% in the reported quarter. Revenues from the DO segment rose 2% (with no impact from currency) due to new partner print services offerings. Revenues from ITO segment went up 15% (Including 1% negative impact from currency) on signings growth in the fourth quarter.

Revenues in the Technology segment dipped 8% to $2.5 billion, with no negative impact from currency. The decline was attributable to a 14% fall in equipment sales and a 4% decline in annuity revenues. The disappointing performance of this segment stems from the fact that Xerox’s customers are migrating to its partner print services offering.

Revenues in the Other segment went down 4% to $374.0 million, including a negative impact of 1% point from currency. The decline in revenues was attributable to lower patent sales and licensing revenue

Financial Position

Xerox had cash and cash equivalents of $1246.0 million as of Dec 30, 2012, compared with $902.0 million as of Dec 31, 2011. Total debt stood at $8.5 billion as of Dec 30, 2012, compared with $8.6 billion as of Dec 31, 2011.

The company generated $1.8 billion in cash from operations during the fourth quarter and expects to generate operating cash flow of $2.1 billion to $2.4 billion in fiscal 2013

Guidance

In fiscal 2012, Xerox focused on scaling its services business to align itself with growth opportunities in the $600 billion market. For first quarter 2013, the company expects adjusted earnings between 23 cents and 25 cents a share and expects adjusted EPS of $1.09 to $1.15 in fiscal 2013.

However, the company needs to be wary of its competitors, which include formidable names such as Lexmark International Inc (LXK - Analyst Report) and Canon Inc (CAJ - Snapshot Report).