Xerox Corp (NYSE:XRX) said Tuesday it plans to increase sales from its services business by up to 8% by 2012.
The Connecticut-based company first intends to alter its revenue mix so as to increase cash flow generated by its services components, with revenue in the segment expected to improve by between 6% to 8% next year.
In 2012, Xerox said it now expects total revenue to grow in the range of 4% to 6%, with adjusted earnings per share to increase to between $1.18 to $1.28. Analysts expected earnings of $1.23 per share for 2012.
The company also plans to expand its document technology business, which includes products like printers and colour pages. Revenue from this unit is expected to show growth of between 1% and 3% by 2012.
In addition, the printing products company revealed plans to invest $300 million in new acquisitions in 2012, lending between 1% to 2% of revenue growth to the global giant.
"Over the next five years, we expect to generate more than $10 billion in free cash flow," said CFO Luca Maestri.
"We remain committed to creating value for our shareholders by growing our business organically and through acquisitions, delivering dividends and buying back stock."
The announcement brought an increase of 2.75% to Xerox stock, pulling its shares to $10.46.
Xerox re-iterated its full-year 2011 outlook of adjusted earnings per share in the range of $1.05 and $1.10, with $2.5 billion generated from operations. Revenue growth of between 6% to 8% is also anticipated.