Xerox Corporation (NYSE:XRX) Q2 2019 Earnings Conference Call - Final Transcript

Jul 30, 2019 • 08:00 am ET

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Xerox Corporation (NYSE:XRX) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Katy Huberty

half outlook?

Executive
Bill Osbourn

Yes. Hey, Katy, it's Bill, I'd say there's two main things, one thing and probably the largest thing that gives us the confidence that the second half is the trend at XBS that we saw in the latter part of Q2 and just what XBS has been able to achieve historically. We know the changes that we made from Project Own It respective are good for the company for the long term, but still adjusting to those changes in the short term had some impact and we're confident that XBS can get back to levels of recent quarters prior to the first two quarters of this year. As far as the delay deals, there is some -- we are expecting some of those two close in the second half. It will have some favorable impact, I would say the bigger impact is really coming from the better responsiveness to the organizational impacts of Project Own It on the XBS side.

Analyst
Katy Huberty

And as you look into 2020, the $450 million of incremental savings that you've earmarked, where did those savings come from relative to the $640 million in 2019?

Executive
John Visentin

Yes, Katy, it's a little bit -- we showed some of it when we did the February Analyst Day. But if you think about it, we have more work we can do on the supply chain side. On our infrastructure, we're investing not only in robot, we're investing in cloud-enabled solutions. So there's a lot of back office, if you'd like, that we have more investments to do that take time, some of these take time. And then there's always optimization that we continue to do. So it's still in the same areas.

Analyst
Katy Huberty

Great. Thank you.

Executive
Ann Nolan Reese

Great. Thank you, Katy. That's all the time we have for questions today. And we really appreciate the interest of everyone who has participated. John, anything to wrap up?

Executive
John Visentin

Yes. I just want to say thank you to everybody. Our transformation continues to drive improvements in EPS, operating margin and free cash flow. The investments we are making in our business is setting us to improve our revenue trajectory, which gives us confidence in our ability to return Xerox to growth over the long term. Thank you, again, for joining us today.

Operator
Operator

[Operator Closing Remarks]