Unit sales of print books rose 2% in the first nine months of 2015, compared to the similar period in 2014, at outlets that report to Nielsen BookScan, which records about 80%–85% of all print sales. The gain was led by a 4% increase in the retail and club channel, which includes bookstores and Amazon; this increase offset declines through mass merchandisers. The performance in the first nine months of the year was also marked by a good showing from adult fiction. Units in the segment have fallen steadily since the surge of e-books in 2009, but from January to September this year units were up 3% over the same span in 2014. Sales of adult fiction were helped enormously by three print blockbusters: Harper Lee’s Go Set a Watchman has sold 1.4 million print copies since its July release; Grey by E.L. James has sold 1.2 million since publication in June; and 1.1 million copies of The Girl on the Train by Paula Hawkins have been sold since its hardcover release in January.
•Transaction to create $11 billion Document Technology company and $7 billion Business Process Outsourcing company in tax free structure
•Separation, expected to be complete by end of 2016, will maximize return to shareholders and align with current market dynamics
•Announces strategic transformation program anticipated to deliver $2.4 billion in savings over next 3 years across both companies
Xerox (NYSE: XRX) announced today the results of its review of the company’s portfolio and capital allocation options announced in October 2015. The Board of the company has unanimously approved management’s plan to separate Xerox into two independent publicly- traded companies, each of which will be a leader in its respective industry.
“Today Xerox is taking further affirmative steps to drive shareholder value by announcing it will separate into two strong, independent, publicly traded companies,” said Ursula Burns, chairman and chief executive officer of Xerox. “These two companies will be well positioned to lead in their respective rapidly evolving markets and capitalize on the opportunities that now exist to expand margins and increase market share.”
“I am confident that the extensive structural review we conducted over the last few months has produced the right path forward for our company. We will now position the companies for success and execute our plan to separate them in the shortest possible timeframe while continuing to focus on achieving our 2016 goals,” added Burns.
New Company Details
The Document Technology company will continue to be a global leader in document management and document outsourcing with approximately $11 billion in 2015 revenue. It will lead the market with superior technology, solutions and innovations that optimize document management in an increasingly interconnected, digital world. Its strong profitability and free cash flow generation will enable significant capital return and provide for selective investments in attractive growth areas.
The Business Process Outsourcing (BPO) company will be an industry leader that helps clients improve the flow of work by leveraging its expertise in managing transaction-intensive processes and applying innovations to automate and simplify business processes. With approximately $7 billion in 2015 revenue – more than 90% of which is annuity based – the company is focused on attractive growth markets including transportation, healthcare, commercial and government services. As an independent company, BPO will have the focus and flexibility needed to continue to adapt to the changing needs of its clients, further refine its portfolio of services and pursue significant growth and margin expansion opportunities.
The leadership and names of the two companies will be determined as the separation process progresses.
more at: http://news.xerox.com/news/Xerox-to-separate-into-two-market-leading-public-companies