Unisys Reports Big Drop In Earnings

The Blue Bell, Pa.-based, computer services and equipment company said net income for the quarter ended Sept. 30 was $25.2 million, or seven cents a share, compared with $56.2 million, or 17 cents a share, for the same period a year ago. Revenues were flat compared with a year ago at $1.45 billion.

The company's profits were hurt by a pre-tax pension expense of $23.5 million, compared with a pre-tax pension income of $8.5 million during the same period last year. In addition, the company reported a charge related to a consolidation in facilities and the reduction in its work force by about 1,400 employees. Unisys also reported lower margins in its outsourcing business.

Those factors led to an operating loss of $38 million in the quarter, compared with an operating income of $105.9 million a year ago.

Unisys Chairman and Chief Executive Lawrence A. Weinbach said the company had taken "a number of actions in the third quarter to enhance our success in the marketplace and drive profitable revenue growth."

"We have implemented integrated sales and marketing programs to ensure clients and prospects are aware of the full 'one Unisys' portfolio of services and solutions," Weinback said in a statement. "We are focusing more resources on key accounts, market segments and geographies where we have the greatest opportunity to win market share."