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EDS' NET INCOME, REVENUES RISE IN RECORD SECOND QUARTER

 EDS' NET INCOME, REVENUES RISE IN RECORD SECOND QUARTER
 DALLAS, Aug. 5 /PRNewswire/ -- EDS registered a 12-percent increase


in net income and a 20-percent rise in revenues in the second quarter, the global information technology company announced today.
 EDS, which is based in the United States and has operations in 30 countries, said that for the quarter ended June 30, 1992, net income rose $17.3 million to a record $157.1 million, compared to $139.8 million in the corresponding period last year. Second-quarter revenues increased from $1.68 billion a year ago to $2.02 billion in 1992, an increase of $339.2 million.
 The earnings of EDS (Electronic Data Systems Corporation), a wholly owned subsidiary of General Motors Corporation (NYSE: GM), are used to calculate the earnings per share of General Motors Class E common stock (NYSE: GME). Earnings per share increased $0.04 in the second quarter, from $0.29 a year ago to $0.33 in 1992, a jump of 14 percent.
 "On June 27, EDS began its fourth decade as a leader in the dynamic field of information technology. Our sustained growth over the past 30 years is the result of a number of factors, but the primary one has been our ability to contribute to the success of our customers," said Les Alberthal, EDS chairman, president and CEO.
 "From the beginning, EDS has had the vision to apply information processing not just to help customers with their immediate computer needs, but also to keep them ahead of the world's rapidly evolving technology curve. Thirty years ago, few people could have imagined such technology as client-server, image processing or compressed video. Today, all of those are very much a reality. We know that even more change lies ahead, and EDS is committed to helping its customers take advantage of that -- of the many technological improvements the next 30 years will bring."
 The second quarter was highlighted by the signing of a 10-year, systems-management agreement with Smith's Food & Drug Centers, Inc., a $2.2 billion food retailer based in Salt Lake City. Under the agreement, EDS will develop new systems and migrate Smith's information processing to a client-server environment. The move is being made to help Smith's sustain its rapid growth, enhance its market responsiveness and strengthen its dominant market position.
 Also in the retail market, EDS was awarded a systems-development contract by the Denver-based PACE Membership Warehouse, a subsidiary of Kmart. EDS also will work with PACE to develop merchandising, marketing and accounting systems to support the company's re-engineered business processes.
 In the health and benefits area, EDS signed a systems-management contract with Healthcare Management Alternatives, Inc., (HMA) of Philadelphia. HMA is under contract with Pennsylvania's Department of Public Welfare to operate HealthPASS, a health maintenance organization that serves Medicaid clients in South and West Philadelphia. In addition to providing comprehensive information technology (IT) services, EDS will supply consulting and systems-engineering support to HMA.
 Meanwhile, EDS continued to expand its international presence during the second quarter. In France, EDS-GFI was awarded a contract by Electrolux France, a subsidiary of the Swedish Electrolux Group, the world's leading household-appliance manufacturer. EDS-GFI will manage Electrolux France's mainframe-based applications in addition to operating systems for Nokia France, a former division of Electrolux.
 In the United Kingdom, the Department of Social Security's Information Technology Services Agency selected EDS-Scicon to provide a system for the new Child Support Agency.
 Also during the second quarter, EDS and Jackson National Life, a wholly owned subsidiary of Prudential plc, of the United Kingdom, extended their business relationship by signing a 10-year, systems- management agreement under which EDS will enhance Jackson National Life's base systems as well as provide a full spectrum of IT services. The move will result in a "real-time" systems environment for the insurance company.
 In continued support of its parent, General Motors Corporation, EDS completed implementation of GM's Processing to the Product Description System at all North American vehicle platforms. For the first time in GM's history, vehicle assembly specifications are now common at these locations, providing significant cost savings and a foundation for a synchronous organization.
 Also in the second quarter, EDS signed the Information Management Planning and Consolidation Target contract with GM's AC Rochester Division. This systems-integration contract is designed to increase AC Rochester's competitiveness and significantly reduce costs by consolidating all its business systems into a common set of systems.
 SUMMARY OF RESULTS OF OPERATIONS
 (in millions except per-share amounts)
 Second Quarter Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Revenues
 Systems and other
 contracts $ 2,005.3 $ 1,666.5 $ 3,985.9 $ 3,244.6
 Interest and
 other income 12.0 11.6 26.4 42.5
 --------- ---------- ---------- ----------
 Total Revenues 2,017.3 1,678.1 4,012.3 3,287.1
 --------- ---------- ---------- ----------
 Total Costs and Expenses 1,767.9 1,456.2 3,551.6 2,871.8
 --------- ---------- ---------- ----------
 Income Before Income Taxes 249.4 221.9 460.7 415.3
 Provision for Income Taxes 92.3 82.1 170.5 153.7
 Separate Consolidated
 Net Income Before Cumulative
 Effect of Accounting
 Change 157.1 139.8 290.2 261.6
 Cumulative Effect of
 Accounting Change -- -- -- (15.5)
 --------- ---------- ---------- ----------
 Separate Consolidated
 Net Income $ 157.1 $ 139.8 $ 290.2 $ 246.1
 --------- ---------- ---------- ----------
 Earnings Attributable to GM Class E
 Common Stock on a Per-Share Basis
 Before Cumulative Effect of Accounting
 Change $ 0.33 $ 0.29 $ 0.61 $ 0.54
 Cumulative Effect of
 Accounting Change -- -- -- (0.03)
 ---------- ---------- ---------- ----------
 Earnings Attributable to GM Class E
 Common Stock on a
 Per-Share Basis $ 0.33 $ 0.29 $ 0.61 $ 0.51
 Cash Dividends Per Share of
 GM Class E Common Stock $ 0.09 $ 0.08 $ 0.18 $ 0.16
 Revenues related to GM and subsidiaries amounted to $828.4 million and $833.2 million for the second quarter ended June 30, 1992, and 1991, respectively, and $1,646.5 and $1,638.1 million for the six months ended June 30, 1992, and 1991, respectively.
 SUMMARY OF CONSOLIDATED BALANCE SHEETS
 (in millions)
 June 30, Dec. 31,
 ASSETS 1992 1991
 ---- ----
 Current Assets:
 Cash and marketable
 securities $ 385.6 $ 415.8
 Accounts receivable 1,305.4 1,283.0
 Inventories 92.8 66.9
 Prepaids and other 219.2 179.9
 -------- --------
 Total Current Assets 2,003.0 1,945.6
 -------- --------
 Property and Equipment, Net 1,612.3 1,551.6
 Operating and Other Assets 2,191.2 2,206.0
 -------- --------
 Total Assets $ 5,806.5 $ 5,703.2
 --------- ---------
 LIABILITIES AND STOCKHOLDER'S EQUITY
 Current Liabilities
 Accounts payable $ 309.9 $ 387.9
 Accrued liabilities 873.2 960.9
 Deferred revenue 267.4 299.2
 Income taxes 129.3 167.8
 Notes payable 256.0 564.9
 Advances from GM 9.2 16.0
 ---------- ----------
 Total Current Liabilities 1,845.0 2,396.7
 ---------- ----------
 Deferred Income Taxes 467.5 414.3
 Notes Payable 636.7 275.9
 Advances from GM 2.4 6.0
 Total Stockholder's Equity 2,854.9 2,610.3
 ---------- ----------
 Total Liabilities
 and Stockholder's Equity $ 5,806.5 $ 5,703.2
 ---------- ----------
 -0- 8/5/92
 /CONTACT: Jon Senderling of EDS, 214-661-6609/
 (GME GM) CO: Electronic Data Systems Corporation ST: Texas, Michigan IN: CPR, AUT SU: ERN


JG -- DE008 -- 6976 08/05/92 09:56 EDT
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Date:Aug 5, 1992
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