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Write-Offs Put Xerox in Red for 3rd Quarter

October 30, 1985

Xerox Corp. on Tuesday reported a third-quarter net loss of $15 million because of two previously announced charges totaling $164 million in connection with its insurance operations.

A year earlier, Xerox earned $81 million. Third-quarter revenue edged up to $2.2 billion from $2 billion.

Earlier this month, Xerox said it would take a $67-million charge to cover the strengthening of reserves at its L. W. Biegler insurance unit and a $97-million charge for the closing of its Industrial Indemnity Financial Corp. operation.

Both units are part of the company's Crum & Forster property-casualty insurance subsidiary.

Excluding the charges, income from Crum & Forster's continuing operations climbed to $7 million from $4 million a year earlier, Xerox said.

Helping to offset the charges was a one-time gain of $61 million from the sale of two publishing companies, Xerox Education Publications and R. R. Bowker Co., Xerox said.

Income from Xerox's main business--reprographics and information systems--rose 15% in the latest quarter to $71 million, said David T. Kearns, Xerox's chairman and chief executive.

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