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Wednesday, June 3, 2009

Fuji Xerox: to take 2-3 yrs for demand to recover

Reuters -

TOKYO, June 3 (Reuters) - Japan's Fuji Xerox Co said it will take several years for global office equipment demand to return to levels seen before the financial crisis, with the sales outlook for industrial nations particularly murky.

Fuji Xerox, a copier and printer joint venture between Fujifilm Holdings (4901.T) and Xerox Corp (XRX.N), said it plans to focus on growth areas such as digital commercial printing operations to drive sales. Digital commercial printers are used to produce such documents as product manuals and direct mail quickly and in large volume, and are a fast-growing segment of the printer market.

Asked how soon the global office machine market is likely to see a full-fledged recovery in demand, Fuji Xerox President Tadahito Yamamoto said: "My answer is 'still uncertain'.

"In Japan and the United States and Europe it's still difficult to tell. I think it will take another two to three years," Yamamoto said at a meeting with reporters on Wednesday.

Parent Fujifilm expects sales by its document solutions section, which shows Fuji Xerox's performance, to fall 7.2 percent in the year to March 2010 to 1 trillion yen ($10.5 billion).

Yamamoto said Fuji Xerox aims to double its revenues from digital commercial printing operations and document-related outsourcing to 400 billion yen by the year to March 2014.

In document-related outsourcing, Fuji Xerox carries out such tasks as brochure and direct mail design, business letter and invoice printing, and hardware maintenance for companies, schools and governments.

Shares in Fujifilm closed up 2 percent at 2,845 yen, outperforming the Nikkei average .N225, which gained 0.4 percent.

Fuji Xerox is owned 75 percent by Fujifilm and 25 percent by Xerox of the United States. (Reporting by Kiyoshi Takenaka; Editing by Michael Watson)

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