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California and the West | EARNINGS ROUNDUP

CSC's net income falls 44% on costs to cut jobs

February 07, 2007|From Bloomberg News

Computer Sciences Corp. said Tuesday that fiscal third-quarter profit fell 44% because of costs to fire workers and close offices. The company's forecast for this quarter drove up shares.

Profit for the quarter that ended Dec. 29 fell to $114.3 million, or 65 cents a share, from $203.5 million, or $1.08, a year earlier, the El Segundo-based computer services company said. The figures are preliminary because a probe into its stock-option grants hasn't been completed, the company said. Sales rose 1.7% to $3.64 billion.

Computer Sciences last year said it would cut about 5,000 jobs to boost profit. Business with the Defense Department increased 6.3% as the company won 70 orders worth about $528 million.

Computer Sciences shares rose 4% to $55.35 in late trading after the earnings report. They closed down 14 cents at $53.24.

In the current quarter, the company expects profit of $1.51 to $1.61 a share, excluding some costs, on sales of as much as $4.2 billion. Analysts had estimated earnings of $1.47 a share on revenue of $4.07 billion.

The company posted third-quarter profit excluding some costs of 85 cents a share, topping the 83-cent average estimate of analysts surveyed by Bloomberg.

Job cuts, mostly in Europe, are continuing as planned, Computer Sciences said. The restructuring cost for this fiscal year has totaled $297.2 million so far, it said.

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