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UNISYS REPORTS FOURTH CONSECUTIVE QUARTERLY PROFIT

 UNISYS REPORTS FOURTH CONSECUTIVE QUARTERLY PROFIT
 BLUE BELL, Pa., Oct. 19 /PRNewswire/ -- Unisys Corporation


(NYSE: UIS) today reported net income of $68.3 million or 23 cents per share for the third quarter ended Sept. 30, 1992, compared with a net loss of $75.8 million or 66 cents per share in the comparable quarter a year ago.
 Revenue, which was aided by currency translation, was up 5 percent to $2.07 billion compared to $1.97 billion in the year ago quarter. Good growth in commercial information systems and services revenue was partially offset by a slight decline in Paramax subsidiary revenue.
 Unisys chairman and chief executive officer, James A. Unruh, said, "We are pleased that revenue and profits for the quarter and the year remain ahead of plan as we continue to successfully control costs in the weak environment that is negatively affecting much of our industry. We now have a 12-month track record of sustained profitability. Our cost reduction programs remain ahead of schedule and our strategy to be a customer driven, technology-based company is on track. Revenue from strategic product offerings such as UNIX systems, mainframes, software and services was strong in the quarter."
 Unisys said that the continued strong earnings performance has enabled the company to continue to utilize tax benefits of operating loss carry-forwards which amounted to 6 cents per share this quarter.
 The company also reported its sixth consecutive quarter of positive cash flow from operating activities. In the quarter, cash flow from operating activities exceeded $200 million, bringing the nine-month total to more than $600 million.
 "Global economic weakness," Unruh said, "contributed to a flat order picture in the quarter. And consistent with our planning assumption for the year, total revenue for 1992 will be down from 1991. However, we are confident that we will meet or exceed all of our financial goals for 1992.
 "Looking at the fourth quarter and into 1993, major restructuring is behind us, but we will continue to adjust our operations on an ongoing basis to meet changing business conditions. We will continue to absorb costs related to those adjustments in current operating results as we have throughout this year. Our planning assumptions remain cautious about worldwide economic conditions, particularly in Europe and Japan. Despite economic uncertainty, we are confident that our record over the past 12 months of sustained profitability is a solid foundation for 1993."
 Unruh said operating progress was matched by continued strengthening of the company's capital structure. Debt was reduced by nearly $275 million in the quarter and debt net of cash is now $2 billion, the lowest level since the formation of the company in 1986.
 Unisys has significantly reduced its reliance on short-term bank financing by issuing almost $1 billion of long-term public debt, including $650 million raised in the third quarter. Given this improved capital structure, the company reduced its revolving credit facility from $1.05 billion to approximately $800 million, with only $350 million drawn down at the end of the quarter. The company expects to have a new, smaller revolving credit agreement in place before the present agreement ends in January 1993.
 In the quarter, the company also announced that its consistent profitability and strong cash flow enabled it to declare a dividend to begin paying down its preferred dividend arrearage.
 For the nine months ended Sept. 30, 1992, net income was $222.0 million or 79 cents per share, including 16 cents from the tax benefit of utilizing operating loss carry-forwards. For the nine month period one year ago, the company reported a net loss of $1.47 billion or $9.69 per share, which included a special charge of $1.2 billion. Revenue was $6.17 billion compared to $6.23 billion a year ago.
 UNISYS CORPORATION
 CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
 (Millions, except per share data)
 Periods ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Revenue:
 Net sales $1,328.8 $1,259.8 $4,011.3 $3,991.6
 Service and rentals 738.7 712.5 2,154.2 2,242.4
 Total 2,067.5 1,972.3 6,165.5 6,234.0
 Costs and expenses
 Cost of net sales 834.3 876.8 2,539.5 3,075.8
 Cost of service and rentals 438.1 434.7 1,276.2 1,478.2
 Selling, general and
 administrative 500.1 498.9 1,461.1 1,966.1
 Research and development 129.7 135.8 396.3 492.8
 Total 1,902.2 1,946.2 5,673.1 7,012.9
 Operating income (loss) 165.3 26.1 492.4 (778.9)
 Interest expense 89.6 99.6 253.6 315.1
 Other income (expense), net 10.2 35.7 48.0 (304.8)
 Income (loss) before income
 taxes and extraordinary item 85.9 (37.8) 286.8 (1,398.8)
 Estimated income taxes 27.6 38.0 91.8 75.0
 Income (loss) before
 extraordinary item 58.3 (75.8) 195.0 (1,473.8)
 Extraordinary item - effect
 of utilization of operating
 loss carry-forwards 10.0 27.0
 Net income (loss) 68.3 (75.8) 222.0 (1,473.8)
 Dividends on preferred shares 30.6 30.3 91.6 90.7
 Earnings (loss) on common
 shares $37.7 ($106.1) $130.4 ($1,564.5)
 Earnings (loss) per common share
 Primary
 Before extraordinary item $0.17 ($0.66) $0.63 ($9.69)
 Extraordinary item 0.06 0.17
 Total $0.23 ($0.66) $0.80 ($9.69)
 Fully diluted
 Before extraordinary item $0.17 ($0.66) $0.63 ($9.69)
 Extraordinary item 0.06 0.16
 Total $0.23 ($0.66) $0.79 ($9.69)
 UNISYS CORPORATION
 CONSOLIDATED BALANCE SHEET
 (Millions)
 Sept. 30, Dec. 31,
 1992 1991
 (Unaudited) (Audited)
 Assets:
 Current assets:
 Cash and cash equivalents $1,112.2 $813.6
 Accounts and notes receivable, net 1,456.5 1,777.2
 Inventories
 Finished equipment and supplies 445.6 470.9
 Work in process and raw materials 504.3 553.9
 Other current assets 746.1 680.3
 Total 4,264.7 4,295.9
 Long-term receivables, net 292.6 404.8

 Rental equipment 512.9 601.8
 Less accumulated depreciation 410.0 458.1
 Rental equipment, net 102.9 143.7
 Properties 2,794.0 2,931.3
 Less accumulated depreciation 1,687.3 1,657.6
 Properties, net 1,106.7 1,273.7
 Cost in excess of net assets acquired 1,235.6 1,266.6
 Investments at equity 263.1 272.1
 Other assets 815.8 775.2
 Total $8,081.4 $8,432.0
 Liabilities and stockholders' equity;
 Current liabilities:
 Notes payable and current maturities of
 long-term debt $649.4 $590.8
 Accounts payable and accruals 2,300.9 2,692.6
 Dividends payable 46.1
 Estimated income taxes 362.0 379.6
 Total 3,358.4 3,663.0
 Long-term debt 2,472.2 2,694.6
 Deferred income taxes 60.0 60.0
 Stockholders' equity
 Preferred stock 1,578.0 1,578.0
 Common stock 1.6 1.6
 Accumulated deficit (321.1) (497.0)
 Other capital 932.3 931.8
 Stockholders' equity 2,190.8 2,014.4
 Total $8,081.4 $8,432.0
 UNISYS CORPORATION
 CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
 (Millions)
 Nine Months ended Sept. 30 1992 1991
 Cash flows from operating activities
 Net income (loss) $222.0 ($1,473.8)
 Add (deduct) items to reconcile net income
 (loss) to net cash provided by operating
 activities:
 Depreciation 278.0 362.8
 Amortization:
 Marketable software 97.6 204.3
 Cost in excess of net assets acquired 31.0 241.0
 Decrease in long-term receivables, net 111.1 299.6
 Decrease in accounts and notes
 receivables, net 285.5 634.3
 Decrease in inventories 74.9 165.9
 (Increase) in other current assets (65.8) (117.4)
 (Decrease) increase in accounts payable and
 other accrued liabilities (414.4) 102.3
 (Decrease) in estimated income taxes (17.6) (76.4)
 (Increase) decrease in other assets (70.6) 47.4
 Other 87.9 18.8
 Net cash provided by operating activities 619.6 408.8
 Cash flows from investing activities
 Proceeds from investments 1,580.2 2,823.3
 Purchase of investments (1,545.8) (2,805.2)
 Proceeds from sales of properties 75.3 329.6
 Investment in marketable software (79.3) (127.8)
 Capital additions:
 Properties (129.8) (117.0)
 Rental equipment (35.1) (58.8)
 Other --- 0.5
 Net cash (used for) provided by investing
 activities (134.5) 44.6
 Cash flows from financing activities
 Proceeds from issuance of debt 973.6 ---
 Principal payments of debt (288.4) (470.6)
 Net (payment of) proceeds from
 short-term borrowings (866.3) 176.5
 Dividends paid on preferred shares (26.5)
 Other 1.3 ---
 Net cash used for financing activities (179.8) (320.6)
 Effect of exchange rate changes on
 cash and cash equivalents (6.7) (5.3)
 Increase in cash and cash equivalents 298.6 127.5
 Cash and cash equivalents, beginning of period 813.6 403.4
 Cash and cash equivalents, end of period $1,112.2 $530.9
 /delval/
 -0- 10/19/92
 /CONTACT: J.P. Hynes of Unisys, 215-986-6948/
 (UIS) CO: Unisys Corporation ST: Pennsylvania IN: CPR SU: ERN


MP -- PH005 -- 1374 10/19/92 08:55 EDT
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