CORRECT: Xerox's Mulcahy To Step Down As CEO, Remain Chairman

("Xerox's Mulcahy To Step Down As CEO, Remain Chairman," published at 9:32 a.m. EDT, and an update at 10:09 a.m. incorrectly stated the company didn't say how it would fill the position of president, in the eighth paragraph. The corrected version of the update follows.)

 
   DOW JONES NEWSWIRES 
 

Xerox Corp. (XRX) Chairman and Chief Executive Anne M. Mulcahy will give up day-to-day oversight of the company she helped turn around, retiring July 1 and being succeeded as CEO by President Ursula M. Burns.

Mulcahy, 56 years old, will continue to serve as chairman of the board. She became CEO eight years ago when the company was struggling after a string of quarterly losses amid falling market share and a probe regarding Xerox's accounting practices.

Burns was seen by many as Mulcahy's heir-apparent since her election as President of Xerox in 2007.

"This has been long expected, long telegraphed," said Shannon Cross, of Cross Research. "I think it's a pretty seamless transition, I don't expect many changes."

Xerox spokesman Carl Langsenkamp said Mulcahy places tremendous value on succession planning, and has "prepared Xerox for the time when she chose to retire."

The company is being pinched by the global spread of economic weakness as well as by the stronger dollar, because it gets most of its revenue from overseas. Xerox makes printers both for offices and large-scale production, but garners most of its sales from its services businesses, which include maintenance contracts, printing supplies and lease revenues.

"It has been a privilege leading Xerox," Mulcahy said in a statement. "The decision to move on is made easy only in the fact that Ursula Burns is so well positioned to take Xerox to the next level. Our strategy is sound and well defined. And, despite a tough economy, we are generating cash, building our technology and services pipeline and poised for a period of steady profitable growth in the future."

Mulcahy joined Xerox in 1976 as a sales representative, four years before the 50-year-old Burns came on board as a mechanical engineering summer intern. Burns became president in April 2007, a post she will not keep. Xerox's Langsenkamp said the company doesn't intend to name a president.

Shares were recently down 6 cents, or 0.7%, to $6.85. Despite a rebound in the past two months, the stock is still off by 50% in the last year.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; [e-mail]

(Jerry A. DiColo contributed to this report.)