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EDS REVENUES TOP $8 BILLION FOR FIRST TIME; NET INCOME ALSO HITS RECORD HIGH

 DALLAS, Feb. 10 /PRNewswire/ -- Spurred by expansion into several new areas and sustained growth in its base, or non-General Motors, business, EDS passed $8 billion in revenues in 1992 for the first time in its 30-year history, the global information technology company announced today.
 EDS, which has operations in more than 30 countries, registered $8.2 billion in revenues for the year ended December 31, 1992, a 16 percent increase over the 1991 figure of $7.1 billion. Net income also rose 16 percent -- from $547.5 million in 1991 to $635.5 million in 1992.
 The earnings of EDS (Electronic Data Systems Corp.), a wholly owned subsidiary of General Motors Corporation, are used to calculate the earnings per share of General Motors Class E common stock (NYSE: GME). Earnings per share increased 17 percent, from $1.14 in 1991 to a record $1.33 in 1992.
 "During the past year, EDS has broadened its business and geographical horizons while adding new customer commitments at a rapid pace and maintaining one of the highest contract renewal rates in the industry," said Les Alberthal, EDS chairman, president and chief executive officer. "Due to the explosive growth of the company and the wide range of business services it provides, 1992 also brought modifications in the organizational structure of EDS.
 These changes were implemented solely to align the company's vast resources -- human, technical and financial -- more closely with our customers' business needs. We are now organized entirely around the customer."
 Revenues from sources outside GM continued to outpace those from the parent in 1992. For the year, revenues from non-GM sources grew to more than 59 percent of the EDS total.
 The fourth quarter capped the best year in EDS' history. The company registered revenues of $2.145 billion for the quarter ended December 31, 1992 -- an increase of 3 percent, or $58.7 million, over the corresponding quarter in 1991. Fourth quarter net income rose 14 percent, from $155.9 million a year ago to $178 million in 1992; and earnings per share increased 12 percent, from $0.33 in 1991 to $0.37 in 1992.
 The fourth quarter was highlighted by the awarding of a 10-year, systems-management agreement to EDS by Bethlehem Steel Corp. Under the agreement, EDS will manage all of Bethlehem Steel's computer and communications operations -- from process and control computers on the plant floor to the mainframe systems that run the accounting and finance operations.
 In the airline industry, EDS was awarded a systems-management agreement by Dalfort Aviation, one of the top third-party, maintenance and engineering services companies. As part of the agreement, EDS will complete a "real-time," client/server maintenance-management system.
 The Commonwealth of Pennsylvania awarded EDS a contract under which the company will provide Medicaid eligibility verification and selected processing services. Scanning and imaging technology will be used under the agreement, a move that will significantly reduce traditional data- entry operations.
 EDS also won a systems-management agreement with Bruno's, Inc., owner of 253 stores in six southeastern states that operate under the names Food World, FoodMax, Bruno's, Food Fair and Piggly Wiggly. EDS will assume full responsibility for Bruno's information technology (IT) operations and will develop new applications to support a wide range of business functions. The agreement with Bruno's was the third systems- management agreement won by EDS with a leading retailer in 1992. The others were with Smith's Food & Drug Centers, Inc., and Montgomery Ward & Co., Inc.
 EDS, meanwhile, enhanced its relationship with San Francisco-based Del Monte Foods with the winning of a 10-year, systems-management contract. Under the agreement, EDS will provide all applications enhancement, information processing and telecommunications management. EDS previously had completed a two-year, systems-integration project under which Del Monte's mainframe-based applications were moved to a distributed, client/server environment.
 In Europe, EDS won systems-management agreements with Klockner- Humboldt-Deutz AG (KHD), a major diesel engine producer, and with Groupama Iberica, a Spanish-based insurance company. Under the agreement with KHD, EDS will manage the company's data center and provide network and LAN support. EDS will provide full information processing for Groupama Iberica and will manage the company's telecommunications system.
 Also in Europe, EDS won the largest systems-management contract awarded in 1992 in France: The agreement between EDS and Mory TNTE, the road freight and transportation subsidiary of the Novalliance Group, calls for EDS to develop, maintain and operate Mory's warehouse, logistics and distribution applications.
 EDS also completed the acquisition of mbp Software and Systems, Germany's oldest IT service and software company. With the acquisition, EDS gained broader knowledge in the area of production-control technology in the steel, chemical, manufacturing and energy industries.
 EDS' Technical Services Division, meanwhile, signed an agreement with Memorex Telex N.V., a leading worldwide supplier of industry standard peripherals and network products and services for the computer industry.
 Under the agreement, EDS will manage product integration and distribution processes for desktop systems in North America.
 Also in the fourth quarter, EDS acquired Cummins Cash and Information Services (CCIS), a subsidiary of Cummins Engine Co. CCIS is a leading provider of IT services to the trucking industry.
 In continued support of its parent, General Motors Corporation, EDS signed a long-term agreement to provide all computer information processing and communications services for GM's North American Operations activities. The agreement includes responsibility for systems design, development, testing, implementation, maintenance and ongoing support.
 For the year, EDS expanded its business in a number of important areas. During 1992, the company:
 -- Was awarded a systems-development and -maintenance agreement by Chicago-based Montgomery Ward, a $5.6 billion chain of 356 specialty stores. Under the agreement, EDS will assume full responsibility for developing and implementing fully integrated retail applications.
 -- Signed 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.
 -- Won a systems-management agreement with United States Borax and Chemical Corp. and its subsidiary, U.S. Silica Company. EDS will assume responsibility for all IT services and will develop the architecture for an anticipated transition to client/server technology.
 -- Signed an agreement with Fremont Pacific Insurance Group, one of the top 20 providers of workers' compensation insurance in the United States. The agreement redefines and expands a contract signed in March 1991.
 -- Extended its business relationship with Jackson National Life, a wholly owned subsidiary of Prudential plc, of the United Kingdom, 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.
 -- Signed a 10-year agreement with Washington Water Power Co. (WWP) to provide data processing, application development, system maintenance and information-center support. WWP is the first U.S. investor-owned, electric and natural gas utility company to use a third-party operator to provide its information technology needs.
 -- Was awarded its largest contract ever in the health and benefits arena and the second-largest commercial contract in company history -- by Blue Cross and Blue Shield of Massachusetts, the third-largest Blue Cross and Blue Shield plan in the U.S. Under the 10-year, systems- management agreement, EDS assumed responsibility for all IT services at Blue Cross and Blue Shield of Massachusetts, with which EDS has had a 20-year relationship.
 -- Won a five-year, systems-management agreement (with five additional one-year options) to provide complete IT services to the Federal Aviation Administration (FAA). The FAA controls both operating and administrative procedures that affect the safety, performance and efficiency of U.S. aviation.
 -- Signed a systems-development and -support agreement with Baxter Diagnostics, Inc., one of the world's leading providers of laboratory systems and a subsidiary of Baxter International, Inc. Following an initial consulting engagement by an EDS design team, EDS was selected by Baxter to develop, test and implement a comprehensive, quality- management system.
 -- Won a systems-management contract with Southern Cross Airlines Holdings Ltd., an Australian company that operates Compass Airlines. EDS will provide complete IT services to Southern Cross that will include telecommunications as well as airline-reservation, financial and flight-operation systems.
 -- Was granted an eight-and-a-half-year, systems-management agreement (with a five-year option) by San Diego-based Postal Buddy Corp., an authorized agent of the U.S. Postal Service. Under the agreement, EDS will help develop, install and operate 10,000 automated self-service kiosks offering a variety of postal-related products and services and will assist in the development of a toll-free customer- assistance center.
 -- Was selected by Nestle USA, Inc., the U.S. division of the largest packaged foods manufacturer in the world, to manage the migration of the company's corporate data-processing center from Los Angeles to Tempe, Arizona. EDS will manage the construction of the new data center and provide migration project management.
 -- Acquired Atlanta-based Energy Management Associates, Inc. (EMA). EMA provides planning software and regulatory and management consulting to the electric and gas utilities industry.
 -- Acquired a 19.9 percent equity interest in Japan Systems K.K., a publicly held corporation providing systems integration, software development, communications systems and hardware to the Japanese market. The company serves customers in a wide variety of industries, including manufacturing, utility, telecommunications and financial, as well as government.
 -- Was selected by Polska Telefonia Komorkowa, the consortium responsible for building Poland's national cellular network, to provide the information-management and billing system for the project.
 -- Announced the signing of an agreement to provide extensive card- processing and network-communications services to Household Credit Services, Inc., and General Motors Corp. in support of GM's new multipurpose credit card. EDS services will include new account application processing and set up, transaction authorization, cardholder accounting, rebate-dollar calculation, customer-service help desk, statement rendering and collection-system support.
 -- Completed implementation of General Motor'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 1992, EDS opened its first corporate Information Technology Center. The center is designed to provide visitors a better understanding of new and existing technologies through the hands-on use of desktop workstations and kiosks at the facility in Plano, Texas.
 EDS
 SUMMARY OF RESULTS OF OPERATIONS
 (in millions except per share amounts)
 Fourth Quarter Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 ---- ---- ---- ----
 Revenues
 Systems and other
 contracts $2,121.5 $2,086.9 $8,155.2 $7,028.5
 Interest and other
 income 23.1 (1.0) 63.7 70.5
 -------- --------- -------- --------
 Total Revenues 2,144.6 2,085.9 8,218.9 7,099.0
 Total Costs and
 Expenses 1,865.7 1,838.5 7,218.1 6,205.3
 -------- --------- -------- --------
 Income Before
 Income Taxes 278.9 247.4 1,000.8 893.7
 Provision for
 Income Taxes 100.9 91.5 365.3 330.7
 -------- --------- -------- --------
 Separate Consolidated
 Net Income Before
 Cumulative Effect of
 Accounting Change 178.0 155.9 635.5 563.0
 Cumulative Effect of
 Accounting Change -- -- -- -- -- -- (15.5)
 -------- --------- -------- --------
 Separate Consolidated
 Net Income $178.0 $155.9 $635.5 $547.5
 ======== ========= ======== ========
 Earnings Attributable
 to GM Class E Common
 Stock on a Per Share
 Basis Before Cumulative
 Effect of Accounting
 Change $0.37 $0.33 $1.33 $1.17
 Cumulative Effect of
 Accounting Change -- -- -- -- -- -- (0.03)
 -------- --------- -------- --------
 Earnings Attributable
 to GM Class E Common
 Stock on a Per Share
 Basis $0.37 $0.33 $1.33 $1.14
 Cash Dividends Per
 Share of GM Class E
 Common Stock $0.09 $0.08 $0.36 $0.32
 Revenues related to GM and subsidiaries amounted to $856.1 and $895.4 million for the fourth quarter ended December 31, 1992 and 1991, respectively, and $3,348.5 and $3,362.2 million for the years ended December 31, 1992 and 1991, respectively.
 SUMMARY OF CONSOLIDATED BALANCE SHEETS
 (in millions)
 Dec. 31, Dec. 31,
 ASSETS 1992 1991
 ---- ----
 Current Assets
 Cash and marketable securities $ 587.9 $415.8
 Accounts receivable 1,255.1 1,283.0
 Inventories 88.5 66.9
 Prepaids and other 225.5 179.9
 -------- --------
? Total Current Assets 2,157.0 1,945.6
 Property and Equipment, Net 1,720.7 1,551.6
 Operating and Other Assets 2,245.8 2,206.0
 -------- --------
 Total Assets $6,123.5 $5,703.2
 ======== ========
 LIABILITIES AND STOCKHOLDER'S EQUITY
 Current Liabilities
 Accounts payable $348.0 $387.9
 Accrued liabilities 918.4 960.9
 Deferred revenue 295.8 299.2
 Income taxes 66.0 167.8
 Notes payable 269.4 564.9
 Advances from GM 5.5 16.0
 -------- --------
 Total Current Liabilities 1,903.1 2,396.7
 Deferred Income Taxes 595.9 414.3
 Notes Payable 560.6 275.9
 Advances from GM 0.5 6.0
 Total Stockholder's Equity 3,063.4 2,610.3
 -------- --------
 Total Liabilities
 and Stockholder's Equity $6,123.5 $5,703.2
 ======== ========
 -0- 2/10/93
 /CONTACT: Jon Senderling of EDS, 214-661-6609/
 (GME GM)


CO: Electronic Data Systems Corporation; General Motors Corporation ST: Texas, Michigan IN: CPR AUT SU: ERN

ML-SB -- DE007 -- 5047 02/10/93 09:59 EST
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Date:Feb 10, 1993
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