BIRMINGHAM STEEL CORPORATION ANNOUNCES STRATEGIC INFORMATION TECHNOLOGY AGREEMENT WITH EDS.BIRMINGHAM, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--April 18, 1995--Birmingham Steel Corporation today announced that it has signed a ten-year agreement with EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. under which EDS will assume responsibility for managing, developing and integrating all information technology systems for Birmingham Steel. The agreement covers Birmingham Steel's corporate headquarters, all existing mini-mill facilities, and the Company's American Steel & Wire subsidiary. The arrangement also extends to future acquisitions made by the Company. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. James A. Todd, Jr., Chairman and Chief Executive Officer of Birmingham Steel, the Company is presently implementing changes throughout the organization as part of a three-year program. The Company's goal is to become the recognized leader in the long products steel market by providing significantly higher levels of customer service. "We are moving decisively to enable Birmingham Steel to gain a stronger competitive advantage within the steel industry," Todd commented. "EDS will help us mobilize mo·bi·lize v. 1. To make mobile or capable of movement. 2. To restore the power of motion to a joint. 3. To release into the body, as glycogen from the liver. quickly and minimize risks, both of which are essential to our aggressive growth strategy." Through the use of its consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , system implementation and systems management capabilities, EDS will spearhead the reengineering of Birmingham Steel's business processes. Among the objectives established by the two companies are improvements to customer service and in the quality of each customer's total transaction. These goals include management of customer orders, accelerated delivery schedules and overall reduction of time between the customer order and receipt of payment. Plans also call for EDS to implement systems specifically designed to support growth through acquisition which will enable Birmingham Steel to rapidly integrate new and diversified diversified (di·verˑ·s operations into its business practices and steel making processes. EDS' responsibility for improving business performance and delivering innovative business approaches is demonstrated through a compensation arrangement based on shared risk and reward. Under the agreement with Birmingham Steel, EDS' level of compensation will be based on specified performance measures. Todd described this arrangement with EDS as "unique and innovative." He further stated, "We also expect improved productivity and reduced administrative and operating costs operating costs npl → gastos mpl operacionales as a direct result of enhancing our information technology capabilities." EDS has operations in 36 countries, employs more than 80,000 people and is the leader in applying information technology to meet the needs of businesses and governments worldwide. EDS reported revenues of $10.05 billion in 1994. Birmingham Steel operates steel mini-mills producing primarily steel reinforcing bar and merchant products, and also specializes in manufacturing high-quality steel rod and wire from semi-finished billets at its American Steel & Wire subsidiary. The common stock of Birmingham Steel Corporation is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "BIR BIR British Institute of Radiology BIR Bureau of Internal Revenue BIR Bureau of International Recycling BIR Baculovirus IAP Repeat BIR Biomedical Imaging Resource BIR Bureau of Intelligence and Research (US State Department) ." CONTACT: Birmingham Steel Corporation, Birmingham J. Daniel Garrett, 216/429-7640 |
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