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XEROX EARNINGS UP 10 PERCENT IN FIRST QUARTER

 XEROX EARNINGS UP 10 PERCENT IN FIRST QUARTER
 STAMFORD, Conn., April 27 /PRNewswire/ -- Xerox Corporation's


(NYSE: XRX) first quarter net income was $128 million, a 10 percent gain from $116 million a year ago, the company reported today.
 Primary earnings per share were $1.12 against $1.01 in the corresponding quarter a year earlier.
 Total revenues for the three months ended March 31 were $4.2 billion, up 1 percent from the comparable 1991 period.
 Document Processing
 First quarter income from document processing operations was $113 million, up 3 percent from $110 million a year ago. Document processing revenues were $3.3 billion compared with $3.2 billion, also a 3 percent increase. Excluding the effect of currency, document processing revenues grew by 5 percent.
 Xerox Chairman and Chief Executive Officer Paul A. Allaire said that the company's overall performance was affected by the weak economic environment in Japan and certain European countries.
 "Nevertheless, worldwide sales of our low-end copiers and decentralized electronic printers continued their strong growth and the DocuTech Production Publisher also continued to have excellent customer acceptance."
 The Xerox chairman said the company "remains well-positioned to take advantage of economic improvements in our markets as we have the strongest, most competitive product line in the document industry."
 Allaire noted that employment dropped by about 1,000 during the first quarter, consistent with the planned document processing work- force reduction of 2,500 announced late last year. The effect of the total reduction will be reflected in the company's financial results later in the year, he added.
 Insurance and Other Financial Services
 Earnings from the operating units of insurance and other financial services were $66 million in the first quarter compared with $47 million last year. After interest and headquarters expense, first quarter income was $15 million against $6 million in 1991.
 First quarter revenues from insurance and other financial services were $944 million compared with $1 billion during the first three months of 1991.
 Stuart B. Ross, chairman and chief executive officer of Xerox Financial Services, Inc., said that the decline in revenue was consistent with patterns experienced in 1991 and was largely due to strategic changes in property and casualty insurance operations. The overall growth in income was primarily attributable to realized capital gains within the investment portfolios, reflecting the strong securities markets, he said.
 "The increased income from asset management, investment banking and brokerage operations, resulting from strong demand in these sectors, was offset by a reduction in property and casualty insurance underwriting results," Ross said.
 "We continue to make progress toward our objectives of strengthening operations and positioning them to add future shareholder value," said Ross. "Regarding asset management, where our objective is to pursue profitable growth, assets under management grew $3 billion to $26 billion during the first quarter. In commercial lines of property and liability insurance, where our objectives are to manage the risks and improve the profitability, we continue to reposition the business for greater value when the cycle improves."
 XEROX CORPORATION
 Financial Summary
 (In millions, except per-share data)
 Three months ended March 31 1992 1991 Pct. B/(W) 1991
 Revenues
 Document processing $3,305 $3,203 3
 Insurance and other financial
 services 944 1,005 (6)
 Total 4,249 4,208 1
 Net income
 Document processing 113 110 3
 Insurance and other financial
 services
 -Operating units 66 47 40
 -Interest and headquarters
 expense (51) (41) (24)
 Total insurance and other financial
 services 15 6 (A)
 Net income 128 116 10
 Primary earnings per share $1.12 $1.01 11
 Fully diluted earnings per share $1.10 $1.00 10
 Income from insurance and other financial services includes allocated interest expense.
 (A) -- Calculation not meaningful.
 -0- 4/27/92
 /NOTE TO EDITORS: First quarter earnings per share on a fully diluted basis were $1.10 compared with $1.00 a year ago.
 Total common shares used to calculate primary earnings per share were 96.6 million in the 1992 first quarter compared with 94.3 million in the corresponding 1991 period./
 /CONTACT: Thomas C. Abbott, 203-968-3378, or Judd Everhart, 203-968-3572, both of Xerox/
 (XRX) CO: Xerox Corporation ST: Connecticut IN: SU: ERN


TS-PS -- NY005 -- 2891 04/27/92 07:08 EDT
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Date:Apr 27, 1992
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