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Computer Sciences Misses Profit Forecasts

February 06, 2001|Bloomberg News

El Segundo-based Computer Sciences Corp., the No. 3 U.S. computer-services company, said fiscal third-quarter net income fell because of acquisition costs. Net income fell to $65.6 million, or 38 cents a share, in the quarter ended Dec. 29, from $82.3 million, or 48 cents, in the year-earlier period. Profit excluding acquisition-related costs missed analysts' forecasts. Overseas currency declines, costs related to consulting-unit job cuts and fewer health-care software licenses hurt sales and profit in the quarter, said Chairman and Chief Executive Van Honeycutt. The company expects fiscal fourth-quarter profit of between 92 cents and 95 cents a share, Honeycutt told investors and analysts in a conference call. Analysts polled by First Call on average had expected the company to earn 95 cents in its final quarter. A slowdown in the U.S. economy, currency shortfalls and uncertainty in the company's consulting and integration businesses will lead to earnings being less than currently expected, Honeycutt said. Sales rose 13% to $2.66 billion, partly on more business from government contracts. CSC's shares fell $2.86 to close at $59.40 on the New York Stock Exchange.

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