Xerox (XRX), the Norwalk, Conn.-based copier company, was able to post a 2% increase in profit in the third quarter, although gross margins took a hit on reduced spending by its corporate customers.

Going into this earnings season, concerns have abounded that the tight credit market and slowing economy would impact corporate purchases of tech gear by U.S. companies.

In a press release, Xerox Chief Executive Anne Mulcahy said the company is facing a “tough business environment,” in which its “strong performance” in developing markets and global imaging helped to offset the economic challenges of the U.S.

“To better align our operations with these changes, were accelerating actions to reduce our cost base and drive operational improvements across the board, giving us more flexibility in our business and in this unpredictable economy,” said Mulcahy.  Xerox plans to aggressively cut costs in the fourth quarter and take a $400 million charge.

For its third quarter Xerox posted net income of $258 million, or 29 cents a share, compared to a year-ago net income of $254 million, or 27 cents a share. Profits were aided by a $41 million tax settlement, which boosted earnings per share by 4 cents. Xerox’s margins came in at 39.2%, down from 40.1% a year ago because fewer U.S. customers bought more expensive machines.

Revenue for the quarter increased 2% to $4.37 billion, lower than the Thomson Reuters expectation of $4.47 billion. The consensus earnings estimate stood at 28 cents a share. Excluding the benefits of the weak dollar, revenue would have been flat compared to last year’s third quarter.

Looking out to its fourth quarter, Xerox said excluding the $400 million charge, the company expects earnings between 34 and 36 cents a share. The Thomson Reuters consensus stands at earnings of 43 cents. Analysts are forecasting 11% earnings growth in the fourth quarter.

 “We believe the operational efficiencies we’ll gain from our restructuring actions in the fourth quarter position us well to deliver double-digit earnings growth in 2009,” said Mulcahy in prepared remarks.