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EARNINGS

Unisys Suffers Loss; Restructuring Cited

January 22, 1987

Unisys, the computer giant formed by the merger of Sperry and Burroughs, reported a $43.4-million loss for 1986 due to the cost of restructuring. However, it predicted substantial earnings gains in 1987.

The company had a fourth-quarter loss of $188.5 million on revenue of $2.54 billion, compared to a year-earlier profit of $115.3 million on revenue of $1.48 billion.

The fourth-quarter loss, which Unisys termed an aberration, had been predicted last month by the company, which said it would post a quarterly loss following a fourth-quarter charge associated with the merger.

But the actual $280-million, or $6.08 per share charge, which covers layoff costs for 9,600 employees, or 8% of the work force, plant closings and other streamlining measures, was higher than the $250 million to $275 million Unisys had anticipated.

For the year, Unisys reported a net loss of $1.63 per share on revenue of $7.43 billion, compared to a 1985 profit of $5.46 per share, or $248.2 million, on revenue of $5.04 billion.

Chairman Michael Blumenthal, whom analysts have applauded for his quick efforts to shed assets to pay for the $4.8-billion merger, said in a statement that Unisys' "expectations for system revenue and order growth are in a single-digit range for 1987."

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