Xerox 2004 Annual Report Download - page 26

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24
The changes made in 2004 relate to the reclassifi-
cation of the operations of our Central and Eastern
European entities to DMO to align our segment
reporting with how we manage our business.
Operating profit was reclassified for this change, as
well as for certain other expense allocations. The
adjustments (decreased) increased full year 2003
revenues as follows: Production-$(40) million,
Office-$(61) million, DMO-$147 million and Other-
$(46) million. The full year 2003 segment profit was
(decreased) increased as follows: Production-$(21)
million, Office-$(11) million, DMO-$21 million, and
Other-$11 million. The adjustments (decreased)
increased full year 2002 revenues as follows:
Production-$(40) million, Office-$(54) million,
DMO-$127 million, and Other-$(33) million. The full
year 2002 segment profit was (decreased) increased as
follows: Production-$(14) million, Office-$(9) million,
DMO-$29 million, and Other-$(6) million.
Revenues by segment for the years ended 2004,
2003 and 2002 were as follows:
Equipment Sales
2004Equipment sales of $4.5 billion increased 5 per-
cent from 2003 reflecting a 3-percentage point benefit
from currency as well as the success of our color and
digital light production products. Additionally, contin-
ued equipment sales growth reflects the success of
numerous products launched in the past two years, as
the majority of 2004 equipment sales were generated
from these products. Color equipment sales continued
to grow rapidly in 2004 and represented approximately
one-third of total equipment sales.
2003 Equipment sales of $4.3 billion increased
7percent from 2002, reflecting significant growth in
DMO, the success of numerous new product introduc-
tions and a 6-percentage point benefit from currency.
In 2003, approximately 50 percent of equipment sales
were generated from products launched in the previ-
ous two years. Color equipment sales represented
28 percent of total equipment sales compared with
24 percent in 2002.
Production: 2004 equipment sales increased 14 per-
cent from 2003, as improved product mix, installation
growth and favorable currency of 4-percentage points
more than offset price declines of approximately
3percent. Strong 2004 production color equipment
sales growth reflected stronger product mix and
increased installations driven bythe DocuColor 5252
and Xerox iGen3 digital color production press prod-
ucts. The Xerox iGen3 digital color production press
utilizes next generation color technology which we
expect will expand the digital color print on demand
market. 2004 production monochrome equipment
sales grew as light-production installations, driven
by the success of the Xerox 2101 copier/printer and
strong demand for the Xerox Nuvera 100 and 120 copier
/printers, as well as favorable currency, more than
offset declines in production publishing, printing and
older technology light lens products.
2003 Production equipment sales grew 10 percent
from 2002, as improved product mix, installation
growth and favorable currency of 7 percentage points
more than offset price declines of approximately 5 per-
cent. Strong 2003 production color equipment sales
growth reflected increased installations and stronger
product mix driven by the DocuColor 6060 and Xerox
iGen3 digital color production press products. 2003 pro-
duction monochrome equipment sales grew modestly
as light production installations, driven by the success
of the new Xerox 2101 copier/printer, and favorable
currency more than offset declines in production
publishing, printing and older technology light lens.
($ in millions) Production Office DMO Other Total
2004
Equipment sales $1,358 $2,431 $ 503 $ 188 $ 4,480
Post sale and other revenue 2,880 4,644 1,194 1,590 10,308
Finance income 352 552 10 20 934
Total Revenue $4,590 $7,627 $1,707 $1,798 $15,722
2003
Equipment sales $1,188 $2,426 $ 466 $ 170 $ 4,250
Post sale and other revenue 2,943 4,622 1,285 1,604 10,454
Finance income 376 594 12 15 997
Total Revenue $ 4,507 $7,642 $1,763 $1,789 $15,701
2002
Equipment sales $1,084 $2,312 $ 374 $ 200 $ 3,970
Post sale and other revenue 3,005 4,576 1,492 1,806 10,879
Finance income 393 599 19 (11) 1,000
Total Revenue $4,482 $7,487 $1,885 $1,995 $15,849