STAMFORD, Conn. (AP) _ Xerox Corp. reported Tuesday its profits fell 52 percent in the fourth quarter as it struggled with increased competition and sales that were diminished by Y2K anxiety. The company said it was pursuing cost-cutting steps but did not say what they might be.

Net income in the October-December period was $294 million, or 41 cents per share, compared with $615 million, or 84 cents a share, a year earlier. Analysts surveyed by First Call/Thomson Financial had expected earnings of 40 cents.

Revenues in the quarter fell 6 percent to $5.44 billion from $5.79 billion a year ago.

The company had warned last month that its earnings, which fell 11 percent in the third quarter, would drop again in the fourth. It said Tuesday it probably will see a similar decline in earnings in the first quarter and a smaller decline in the second before earnings start rising again.

In a conference call with industry analysts Xerox president Rick Thoman said the company would look for efficiencies and cost-savings steps and may take a charge of ``hundreds of millions of dollars'' in the first quarter of this year. Thoman, who called the fourth-quarter results a major disappointment, said ``virtually everything is on the table'' to get costs down.

Shares of Xerox rose 18 3/4 cents to $21.93 3/4 in trading at 5:15 p.m. on the New York Stock Exchange.

The company said that in addition to Year 2000 computer fears, its results were hurt by reduced earnings from Brazil, its own customer administration reorganization and unfavorable currency exchange rates.

For all of 1999, net income from continuing operations fell 16 percent to $1.42 billion, or $1.96 a share, from $1.69 billion, or $2.33 a share, in 1998. Including special items, such as a restructuring charge of $1.11 billion, net income in 1998 was $395 million, or 52 cents a share.

Revenues fell 1 percent to $19.23 billion from $19.45 billion in 1998.