May 3, 2018 / 1:48 AM / 6 months ago

CORRECTED-Xerox reports 42.5 pct drop in first quarter profit

(Corrects prior year figure in paragraph six to $40 million, or 14 cents per share)

May 2 (Reuters) - Xerox Corp, battling shareholder disapproval over its $6.1 billion deal with Fujifilm Holdings , on Wednesday reported a 42.5 percent drop in quarterly profit partly due to a charge linked to its venture with the Japanese firm.

Xerox said on Tuesday its chief executive officer and most of its board will step down to settle a suit by activist shareholders Carl Icahn and Darwin Deason, paving the way for new management to reconsider the contentious deal with Fujifilm.

The company said it did not provide guidance for 2018 due to the pending director appointment, nomination and settlement agreement with Icahn and Deason, among others.

Xerox also said it would not hold an earnings call with analysts.

Fujifilm and Xerox struck a $6.1 billion deal in January to combine the U.S. company into their existing joint venture, Fuji Xerox, to gain scale and cut costs as demand for office printing equipment declines.

Net income attributable to Xerox fell to $23 million, or 8 cents per share, in the quarter ended March 31, from $40 million, or 14 cents per share, a year earlier.

Quarterly earnings from continuing operations was down from last year primarily due to lower equity income, including the Xerox share of a Fuji Xerox restructuring charge, the company said in a statement.

Total revenue was nearly flat at $2.44 billion. (Reporting by Ismail Shakil in Bengaluru Editing by Darren Schuettler)

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