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UNISYS REPORTS INCREASED PROFITS

 BLUE BELL, Pa., July 19 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) today reported net income of $103.0 million or 39 cents per fully diluted share for the second quarter ended June 30, 1993.
 A year ago, the company's net income before an extraordinary item was $88.4 million or 35 cents per share. Including the extraordinary item of $17.0 million or 10 cents per share which resulted from tax benefits of operating loss carry-forwards, net income a year ago was $105.4 million or 45 cents per share. The average number of fully diluted shares in the latest quarter was 198.6 million vs. 167.8 million a year ago, principally reflecting the issuance of $345 million of 8.25 percent convertible subordinated notes in June 1992. Revenue was $1.93 billion compared to $2.09 billion in the year-ago quarter.
 Unisys Chairman and Chief Executive Officer James A. Unruh said, "Profitability has improved year to year despite increased economic weakness in Europe and Japan. Further improvement in gross profit margins coupled with continued reduction in operating expenses has resulted in an operating profit margin of 11.3 percent, the highest in five years. In a marketplace where competition and pricing remain very intense, we are very pleased that our strategy of managing the business for bottom-line profitability has produced this quarter's financial results. Going forward, we will retain tight cost and expense controls to deal with the uncertain economic environment and continue to focus on revenue opportunities with good margins. We expect our streamlined cost structure will be the key factor in providing profitability and cash flow in the near term, while we continue to invest in services and products that will drive future revenue growth."
 Unisys said cash flow from operations remained strong in the quarter, exceeding $180 million. With debt net of cash of $1.4 billion at June 30, 1993, the net debt-to-capital ratio is now below 37 percent, compared to a high of 61 percent two years ago. Financial progress has led to recent credit rating upgrades from Moody's and Duff and Phelps.
 The company said orders and revenue were down in the quarter compared to the year ago period. A decline in hardware orders and revenue, led by declines in Europe and Japan, was partially offset by growth in software, and services and systems integration. European orders and revenue were also negatively affected by currency translation.
 For the six months ended June 30, 1993, net income was $363.6 million or $1.48 per share. The six-month period included a net gain from one-time items in the first quarter of $203.8 million or 83 cents per fully diluted share. In the six-month period one year ago, net income was $153.7 million or 56 cents per common share including $17.0 million or 10 cents per share from the tax benefit of operating loss carry-forwards. Revenue was $3.83 billion compared to $4.10 billion for the first six months of 1992.
 UNISYS CORPORATION
 CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
 (Millions, except per share data)
 Three Months Six Months
 Ended June 30, Ended June 30,
 1993 1992 1993 1992
 Revenue
 Net sales $1,234.4 $1,371.0 $2,478.7 $2,682.5
 Services 692.8 717.5 1,356.0 1,415.5
 1,927.2 2,088.5 3,834.7 4,098.0
 Costs and expenses
 Cost of net sales 725.2 852.0 1,490.9 1,705.2
 Cost of services 449.9 468.4 902.6 939.7
 Selling, general and
 administrative 410.3 431.8 816.7 859.4
 Research and development 124.1 133.3 254.4 266.6
 1,709.5 1,885.5 3,464.6 3,770.9
 Operating income 217.7 203.0 370.1 327.1
 Interest expense 59.7 80.4 131.8 164.0
 Other income (expense), net (6.5) 11.2 (3.3) 37.8
 Income before income taxes 151.5 133.8 235.0 200.9
 Estimated income taxes 48.5 45.4 75.2 64.2
 Income before changes in
 accounting principles and
 extraordinary items 103.0 88.4 159.8 136.7
 Effect of changes in accounting
 principles 230.2
 Extraordinary items 17.0 (26.4) 17.0
 Net income 103.0 105.4 363
 Dividends on preferred shares 30.6 30.6 61.0 61.0
 Earnings on common shares $72.4 $74.8 $302.6 $92.7
 Earnings per common share
 Primary
 Before changes in accounting
 principles and extraordinary
 items $0.44 $0.35 $0.60 $0.46
 Effect of changes in
 accounting principles 1.39
 Extraordinary items 0.11 (0.16) 0.11
 Total $0.44 $0.46 $1.83 $0.57
 Fully diluted
 Before changes in accounting
 principles and extraordinary
 items $0.39 $0.35 $0.65 $0.46
 Effect of changes in
 accounting principles 0.94
 Extraordinary items 0.10 (0.11) 0.10
 Total $0.39 $0.45 $1.48 $0.56
 Shares used in the per share
 computations (thousands):
 Primary 164,881 163,768 164,953 163,650
 Fully diluted 198,621 167,842 246,532 165,863
 Certain prior year amounts have been reclassified to conform with the current year presentation.
 UNISYS CORPORATION
 CONSOLIDATED BALANCE SHEET
 (Millions)
 June 30, December 31,
 1993 1992
 (Unaudited) (Audited)
 Assets
 Current assets
 Cash and cash equivalents $761.7 $809.1
 Marketable securities 24.2 73.7
 Accounts and notes receivable, net 1,090.1 1,326.3
 Inventories
 Finished equipment and supplies 405.6 446.9
 Work in process and raw materials 418.9 426.9
 Deferred income taxes 302.6 433.0
 Other current assets 113.6 114.8
 Total 3,116.7 3,630.7
 Long-term receivables, net 128.7 205.4
 Properties and rental equipment 2,935.9 3,075.6
 Less accumulated depreciation 1,903.5 1,949.9
 Properties and rental equipment, net 1,032.4 1,125.7
 Cost in excess of net assets acquired 1,204.5 1,225.2
 Investments at equity 297.6 283.9
 Deferred income taxes 745.1
 Other assets 1,172.4 1,077.8
 Total $7,697.4 $7,548.7
 Liabilities and stockholders' equity
 Current liabilities
 Notes payable $28.1 $53.2
 Current maturities of long-term debt 144.4 283.1
 Accounts payable 1,020.5 1,058.0
 Other accrued liabilities 1,005.3 1,213.1
 Dividends payable 46.0 46.1
 Estimated income taxes 408.3 330.9
 Total 2,652.6 2,984.4
 Long-term debt 2,056.4 2,172.8
 Other liabilities 475.7 147.4
 Stockholders' equity
 Preferred stock 1,578.0 1,578.0
 Common stock 1.6 1.6
 Retained earnings (accumulated deficit) 43.7 (228.0)
 Other capital 889.4 892.5
 Stockholders' equity 2,512.7 2,244.1
 Total $7,697.4 $7,548.7
 Certain prior year amounts have been reclassified to conform with the current year presentation.
 UNISYS CORPORATION
 CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
 (Millions)
 Six Months Ended
 June 30,
 1993 1992
 Cash flows from operating activities
 Net income $363.6 $153.7
 Add (deduct) items to reconcile net income
 to net cash provided by operating
 activities:
 Effect of changes in accounting principles
 and extraordinary items (203.8) (17.0)
 Depreciation 156.3 194.5
 Amortization:
 Marketable software 69.6 65.5
 Cost in excess of net assets acquired 20.7 20.7
 Decrease in receivables, net 295.5 370.9
 Decrease in inventories 49.3 63.0
 (Decrease) in accounts payable and other
 current liabilities (305.6) (386.4)
 (Decrease) in estimated income taxes (30.5) (6.3)
 (Decrease) in other liabilities (17.8) (13.5)
 Decrease (increase) in other assets 2.5 (92.1)
 Other 12.1 44.8
 Net cash provided by operating activities 411.9 397.8
 Cash flows from investing activities
 Proceeds from investments 1,067.8 1,089.6
 Purchases of investments (1,068.3) (1,035.0)
 Proceeds from marketable securities 98.1
 Purchases of marketable securities (48.5)
 Proceeds from sales of properties 13.4 64.9
 Investment in marketable software (51.9) (45.4)
 Capital additions of properties and
 rental equipment (96.7) (108.2)
 Net cash used for investing activities (86.1) (34.1)
 Cash flows from financing activities
 Proceeds from issuance of debt 336.4
 Principal payments of debt (248.9) (104.1)
 Net reduction in short-term borrowings (25.1) (125.3)
 Dividends paid on preferred shares (92.1)
 Other 3.7 0.9
 Net cash (used for) provided by
 financing activities (362.4) 107.9
 Effect of exchange rate changes on
 cash and cash equivalents (10.8) (7.0)
 (Decrease) increase in cash and
 cash equivalents (47.4) 464.6
 Cash and cash equivalents, beginning
 of period 809.1 813.6
 Cash and cash equivalents, end of period $761.7 $1,278.2
 Certain prior year amounts have been reclassified to conform with the current year presentation.
 /delval/
 -0- 7/19/93
 /CONTACT: J. Peter Hynes of Unisys, 215-986-6948/
 (UIS)


CO: Unisys Corporation ST: Pennsylvania IN: CPR SU: ERN

D

MK -- PH003 -- 2888 07/19/93 08:52 EDT
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Date:Jul 19, 1993
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