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EDS REGISTERS RECORD EARNINGS IN THIRD QUARTER

 /Repeat of EDS earnings text correcting garble in 13th paragraph/
 DALLAS, Oct. 27 /PRNewswire/ -- EDS achieved record earnings and signed more than $1 billion in new business in the third quarter, the global information technology company announced today.
 For the quarter ended September 30, 1993, net income grew 14.5 percent to $191.6 million, compared with $167.3 million for the corresponding period last year. Continued growth in revenues and ongoing attention to achieving long-term cost efficiencies supported the attainment of record earnings.
 The earnings of EDS (Electronic Data Systems Corporation), a wholly owned subsidiary of General Motors Corporation, are used to calculate the earnings per share of General Motors Class E common stock (NYSE symbol GME). Earnings per share were up $0.05 in the third quarter, from $0.35 a year ago to $0.40 in 1993, an increase of 14.3 percent.
 EDS also registered an increase in total revenues during the third quarter -- from $2.06 billion last year to $2.08 billion in 1993. Revenues from EDS' "base," or non-General Motors, business, were up seven percent. Both base and GM revenues were negatively impacted by an unfavorable shift in foreign exchange rates resulting from a stronger dollar. The total impact on third-quarter revenues was more than $70 million.
 Les Alberthal, EDS chairman, president and CEO, said, "We are confident that our base-business revenue growth will continue to accelerate. The information technology industry promises strong growth as it emerges as a critical strategic force globally.
 "The third quarter was a strong one for us, with another period of record earnings," Alberthal said. "EDS' continued success is the result of our ability to improve our own business performance and help our clients in the global marketplace improve theirs. In the third quarter, we continued to develop new strategic partnerships with our clients and to build our success around theirs."
 EDS, which is based in the United States and has operations in more than 30 countries, signed $1.02 billion in new business in the third quarter, bringing the total for the year to $4.3 billion.
 The third quarter was highlighted by the awarding of a $400-million, 10-year, systems-management contract to EDS by Nielsen Marketing Research North America. Under the agreement, EDS will assume responsibility for a large portion of Nielsen's information technology (IT) functions, which will be managed from EDS' Information Management Center in Plano, Texas.
 Also in the communications industry, EDS entered into an exclusive agreement with Spectradyne, the world's leading provider of pay-per-view entertainment and information services to the lodging industry. EDS will install a communications network that will span the U.S., Puerto Rico, Mexico and Canada and will implement advanced digital-based technology to permit the first delivery of compressed digital video to the more than 700,000 hotel rooms Spectradyne serves.
 In the communications industry in Europe, EDS entered into an agreement with Time Life UK Ltd., a subsidiary of Time Warner, under which EDS will act as a "partner" supporting the customer's business strategy and as an IT service provider. As part of the agreement, EDS will assume responsibility for fulfillment services for some of Time Life UK Ltd.'s book and music direct-marketing activities.
 Also in Europe, CERA, the largest privately owned savings bank in Belgium and a member of the Unico Banking Group, a consortium of Europe's largest banks, selected EDS to implement and integrate the International Banking System, a client/server architecture that will allow CERA to manage its global assets in "real time."
 EDS also expanded its agreement with another large financial institution in Belgium, the BACOB Savings Bank. EDS currently is providing consulting, systems-development and systems-management services to the bank. It now will add three mortgage-banking software products and will utilize client/server technology for BACOB's mortgage banking network.
 EDS, meanwhile, signed a five-year, systems-development and integration agreement with VDAB, the Belgian government agency responsible for dealing with such issues as unemployment, re-employment and retraining. EDS will design and implement a client/server architecture linking all VDAB offices; when completed, it will be the largest client/server operation in Belgium.
 Also in the government arena, EDS signed a five-year contract with the U.S. Department of Agriculture to maintain and operate the agency's Processed Commodities Inventory Management System. The system, which is based in Kansas City, supports the purchase and distribution of more than eight million tons of such agricultural commodities as fruits, vegetables, milk, cheese and poultry. The system will submit delivery orders, handle bidding, arrange shipments and pay suppliers for domestic and export commodities.
 In the manufacturing industry, EDS was selected by the Frigidaire Co., the Dublin, Ohio-based manufacturer of appliances, to provide corporate IT services for the next 10 years. EDS also will conduct four "value-added" management consulting engagements that offer a high potential for identifying additional operational savings.
 EDS also was selected by San Francisco-based Axion Pharmaceuticals to develop and implement client/server technology to assist Axion in providing services to physicians who treat cancer patients. EDS will provide Axion with internal financial, accounting and order-management systems designed to eliminate the paper associated with current fax and mail orders.
 Also in the third quarter, EDS and President Baking Company, which is based in Atlanta, announced a systems-management relationship intended to advance President Baking's growth opportunities and provide timely information for critical business decisions. President Baking recently acquired several smaller bakeries, and EDS will assist in aligning those bakeries' systems and strategies to create a seamless environment for the flow of information throughout the company.
 In the transportation industry, EDS was awarded a 10-year, systems- management contract with Sea-Land Service, Inc., the largest U.S. shipping company and a world leader in international freight transportation and related
trade services. EDS will support the global operations of Sea-Land's Inland Transportation System.
 And EDS was selected by Celebrity Cruise Lines, Inc., the fourth largest cruise fleet in the world, to design, develop and implement a new cruise line reservation system. In addition, EDS will migrate Celebrity's existing systems to a client/server, open-systems platform.
 Meanwhile, EDS acquired Ampersand Corp. of York, Pa. Ampersand is a recognized leader in the development and installation of open-systems- based branch automation products employing client/server architecture. EDS plans to integrate Ampersand's branch systems into its existing service offerings.
 Also during the third quarter, American Electronics Association Credit Union in Sunnyvale, Calif., chose EDS to install a "virtual in- house" systems environment under a systems-management agreement that is EDS' largest ever with a credit union. The new environment will integrate features and functions typically found in an in-house system with the reliability, security and technical support commonly associated with service-bureau processing.
 In the health-care arena, EDS was selected by Pacific Bell, the largest operating company of San Francisco-based Pacific Telesis, to provide benefit-management support for more than 105,000 active and retired employees. EDS will operate and enhance the current system, provide customer service hot-line support and enrollment management.
 And Baxter Diagnostics, Inc., a subsidiary of Baxter International, Inc., the world's leading provider of health-care products for use in clinical laboratories, entered into a strategic alliance with EDS under which EDS will provide systems-development, systems-operations, network- management and end-user support for Baxter's on-line, client/server network.
 In continued support of its parent, General Motors Corporation, EDS completed implementation of the Integrated Scheduling Project (ISP) at all 31 GM assembly plants in North America. ISP replaces more than 80 separate GM material systems and provides a common business system for production scheduling and order management across all GM assembly plants in the U.S., Canada and Mexico.
 Also in the third quarter, EDS renewed a long-term contract by signing a five-year agreement to provide all IT services for the GM Locomotive Group (GMLG). EDS will provide comprehensive IT services for engineering, manufacturing and commercial applications. The agreement includes a systems-consolidation plan that will migrate all GMLG major functions to a common integrated set of systems tied to the GMLG business plan.
 EDS also continued to expand its management consulting business during the third quarter and announced the appointment of H. Michael Gleason, formerly a managing partner of Coopers & Lybrand Management and Consulting Services Group in New York, as EDS vice president and group executive over global consulting operations.
 -0- 10/27/93 R
 /PRNewswire -- Oct. 27/
 (GME GM)


CO: Electronic Data Systems Corporation ST: Texas IN: CPR AUT SU: ERN

ML -- DE008 -- 7324 10/27/93 13:05 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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