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P.M. BRIEFING : $648-Million Loss Hits Unisys

October 27, 1989| From Times Wire Services

BLUE BELL, Pa. — Unisys Corp., the nation's No. 3 computer company, today reported a huge third-quarter loss of $648.7 million and only modestly higher revenues owing to slack demand for its computers.

The company had earlier announced plans for a reduction of 8,000 people in its work force and the consolidation of manufacturing facilities.

The staff reductions resulted in a special charge of $230 million. Unisys also had charges of $150 million for defense division losses related to fixed price contracts.

A number of defense contractors have reported losses on such fixed contracts, introduced by Washington to put a cap on defense costs.

The Unisys quarterly loss, which worked out to $4.25 a share, compares with a profit of $151 million or 77 cents a share a year ago. Revenues climbed to $2.35 billion from $2.27 billion. Growth in the defense business helped revenues.

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