Xerox Says SEC Probing Its Mexico Business

Xerox Corp. said it was told the Securities and Exchange Commission was investigating accounting issues related to its Mexican business, another blow to the photocopier maker after a series of profit warnings and the resignation of its chief executive. A spokesman for Xerox, which employs 3,000 workers in five Mexican cities, declined to elaborate on the investigation, saying the SEC has restricted what it can discuss. But Xerox said it was cooperating with the SEC and would release more information when it reports second-quarter earnings July 26. An SEC spokesman said he could not confirm nor deny that the agency was investigating Xerox, which generates about $400 million in annual sales in Mexico. Earlier this month, Stamford, Conn.-based Xerox issued a warning about its second-quarter earnings, saying results would be below forecasts in part because of problems in Mexico related to customer receivables, or unpaid bills. Xerox shares fell $1.44 to close at $18.56 on the New York Stock Exchange.