(Reuters) – Xerox Corp (XRX.N) posted a better-than-expected quarterly profit on Tuesday, but cut its full-year revenue forecast citing organizational changes, primarily in North America.

FILE PHOTO: The company logo for Xerox is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. REUTERS/Brendan McDermid/File Photo

Shares of the U.S. photocopier maker were down 3.5% at $32.72 in trading around noon.

Xerox scrapped a complex deal last year to merge with Japan’s Fujifilm Holdings Corp (4901.T) after it ran into strong opposition from activist investors Carl Icahn and Darwin Deason.

Since then, the company has taken initiatives to streamline its business under the new management led by Chief Executive Officer John Visentin, an Icahn appointee.

Xerox now expects 2019 revenue to fall 6%, compared with a 5% decline it had estimated earlier.

Total revenue for the second quarter fell nearly 9% to $2.29 billion, as businesses continue to cut spending on printers and photocopiers.

Analysts had expected revenue of $2.32 billion, according to IBES data from Refinitiv.

“Results were due to weaker economic conditions in Western Europe and certain developing markets and continued operational impacts in the United States we identified last quarter, albeit improving as the quarter went on,” Visentin said on a post earnings call with analysts.

Net income attributable to Xerox rose to $181 million, or 77 cents per share, in the three months ended June 30, from $112 million, or 42 cents per share, a year earlier.

Excluding items, the company earned 99 cents per share, above estimates of 88 cents.

Reporting by Munsif Vengattil in Bengaluru; Editing by Anil D’Silva

Our Standards:The Thomson Reuters Trust Principles.

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