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Xerox Slashes Dividend to 5 Cents a Share

October 10, 2000|Bloomberg News

Troubled copier giant Xerox Corp. on Monday took a step the stock market had figured was all but inevitable: The firm said it would slash its quarterly cash dividend payment to 5 cents a share from 20 cents.

Xerox said it will save $400 million a year with the dividend cut--cash the company maintains it needs as it fights to get its business back into the black.

Xerox said last week it would cut costs, consider asset sales and reevaluate its dividend after disclosing that it would lose money in the third quarter.

Chief Executive Paul Allaire has called the company's business plan unsustainable.

Xerox's shares (XRX) fell 31 cents to $10.44 in regular New York Stock Exchange trading. The dividend move was announced after trading ended.

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