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UNISYS REPORTS STRONG 1992 RESULTS

 BLUE BELL, Pa., Jan. 20 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) today reported strong earnings gains for the fourth quarter and full year 1992 and said it expected significant earnings growth in 1993.
 James A. Unruh, Unisys chairman and chief executive officer said, "In a very difficult year for our industry, we successfully turned the company around and exceeded all our financial and operational goals. We are extremely pleased with the results of the past year."
 For the year ended Dec. 31, 1992, Unisys reported net income of $361.2 million or $1.40 per fully diluted common share, including 36 cents per share from the tax benefit of utilizing operating loss carry-forwards. In the prior year Unisys reported a net loss of $1.4 billion or $9.37 per common share, which included a special charge of $1.2 billion. As expected, revenue was down slightly in 1992 to $8.42 billion compared with $8.70 billion in 1991, or $8.57 billion adjusted for the sale of the Timeplex subsidiary as of June 30, 1991.
 For the fourth quarter ended Dec. 31, 1992, Unisys reported net income of $139.2 million or 58 cents per fully diluted common share including 15 cents per share from the tax benefits of operating loss carry-forwards. In the fourth quarter a year ago, the company reported net income of $80.5 million or 31 cents per common share. Operating income was $228.3 million or 10 percent of revenue compared with $200.0 million or 8 percent a year earlier. Revenue of $2.26 billion in the quarter was higher than expected, but below the $2.46 billion in 1991. Total orders declined in the fourth quarter as planned with higher U.S. commercial orders offset by lower orders from Europe, Japan and Paramax.
 Unruh said, "1992 was an outstanding turnaround year. Revenue stabilized, profitability improved, and cash flow from operations exceeded $1.1 billion -- well over our goal of $700 million. Just as important, customer and supplier confidence moved up sharply as did employee morale. Aggressive asset management programs resulted in a 25 percent reduction in accounts receivable
and a 15 percent inventory reduction. Debt was reduced nearly $800 million to about $2.5 billion. Debt net of cash is now less than $1.7 billion, the lowest level since the formation of the company in 1986. As a ratio to total capital, debt net of cash is 42 percent compared to 61 percent 18 months ago. Our longer term goal continues to be a debt to total capital ratio that does not exceed 25 percent."
 Unisys said that revenue from software and services posted good growth for full year 1992 over 1991. The two flagship mainframe lines -- A Series and 2200 Series -- posted double-digit gains over 1991. UNIX systems had a very strong year with revenue growth nearly double the mainframe growth rate. The company was particularly encouraged by strong new account business from UNIX systems and from the new A 11 information hub system.
 "We enter 1993 with considerable momentum in key strategic areas," Unruh said. "We have a major initiative in place to build our information services capabilities. We made significant progress in open systems products, particularly in UNIX systems. And we continued to add open attributes to our mainframes to enable them to perform as information hubs in open, multivendor, enterprise networks that will dominate the 1990s."
 Unruh said that as Unisys accelerates its transformation to an information management solution provider, it will build in 1993 on specific strengths that include:
 -- An expanding information services capability - Unisys added an acknowledged industry expert to the senior management team in late 1992 to lead the expansion of information services.
 -- The company strategy is to partner with the customer to apply technology for a measurable bottom-line return. Services will lead this effort. Commercial services revenue is already over $1 billion including commercial services from Paramax.
 -- Continued client-server product initiatives - Unisys will deliver in 1993 new UNIX systems, PCs and CTOS workstations for client-server computing based on technology made available from an alliance with Intel.
 -- Leadership in system interoperability - The Unisys product line, including UNIX systems, PCs and mainframes, has more products that have passed industry standard, OSI open interoperability tests run by OSINET than any other vendor. The 2200 mainframe in particular has emerged in tests as a leader in open networking.
 -- A large customer base potential for open systems - The company expects to accelerate the sale of open distributed systems into its mainframe base, a major opportunity not fully exploited to date, while continuing to acquire new accounts with open systems.
 "For 1993, we expect to show further significant progress in profitability and to further strengthen our balance sheet in spite of global economic weakness, particularly in Europe and Japan. We have based our business plans on flat revenue, continuing our conservative approach of generating profits through quality business, focus and continuing strong cost controls. However, our principal focus in 1993 is to take actions that will result in growth. If major world economies are better than expected, we have positioned the company to benefit," Unruh said.
 UNISYS CORPORATION
 CONSOLIDATED STATEMENT OF INCOME
 (Millions, except per share data)
 Periods ended Three Months Year
 Dec. 31 1992 1991 1992 1991
 Revenue
 Net sales $1,513.7 $1,697.8 $5,525.0 $5,689.4
 Service and rentals 742.7 764.3 2,896.9 3,006.7
 2,256.4 2,462.1 8,421.9 8,696.1
 Costs and expenses
 Cost of net sales 920.9 1,088.0 3,460.4 4,163.8
 Cost of service and rentals 432.8 474.7 1,709.0 1,952.9
 Selling, general and
 administrative 534.8 553.3 1,995.9 2,519.4
 Research and development 139.6 146.1 535.9 638.9
 2,028.1 2,262.1 7,701.2 9,275.0
 Operating income (loss) 228.3 200.0 720.7 (578.9)
 Interest expense 87.0 92.5 340.6 407.6
 Other income (expense), net 7.5 3.0 55.5 (301.8)
 Income (loss) before income
 taxes and extraordinary
 item 148.8 110.5 435.6 (1,288.3)
 Estimated income taxes 47.6 30.0 139.4 105.0
 Income (loss) before
 extraordinary item 101.2 80.5 296.2 (1,393.3)
 Extraordinary item - effect
 of utilization of operating
 loss carry-forwards 38.0 65.0
 Net income (loss) 139.2 80.5 361.2 (1,393.3)
 Dividends on preferred shares 30.5 30.5 122.1 121.2
 Earnings (loss) on common
 shares $108.7 $50.0 $239.1 ($1,514.5)
 Earnings (loss) per common share
 Primary
 Before extraordinary item $0.43 $0.31 $1.06 ($9.37)
 Extraordinary item 0.23 0.40
 Total $0.66 $0.31 $1.46 ($9.37)
 Fully diluted
 Before extraordinary item $0.43 $0.31 $1.04 ($9.37)
 Extraordinary item 0.15 0.36
 Total $0.58 $0.31 $1.40 ($9.37)
 /delval/
 -0- 1/20/93
 /CONTACT: J. Peter Hynes of Unisys, 215-986-6948/
 (UIS)


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

MK -- PH004 -- 6726 01/20/93 08:44 EST
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Date:Jan 20, 1993
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