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UNISYS REPORTS STRONG SECOND QUARTER RESULTS

 UNISYS REPORTS STRONG SECOND QUARTER RESULTS
 BLUE BELL, Pa., July 16 /PRNewswire/ -- Unisys Corporation


(NYSE: UIS) today reported net income of $105.4 million for the second quarter ended June 30, 1992, compared with a net loss of $1.3 billion including special pretax charges of $1.2 billion in the comparable quarter a year ago.
 Earnings per common share in the quarter were 45 cents compared with a loss of $8.24 per share a year ago.
 Revenue was $2.09 billion compared to $2.20 billion in the year ago quarter. The company said revenue, as expected, declined slightly from a year earlier which included $63 million in second quarter 1991 revenue from its Timeplex subsidiary which was sold as of June 30, 1991.
 Unisys chairman and chief executive officer, James A. Unruh, said, "These results exceeded our expectations with all major operating units meeting or exceeding their key goals for the quarter despite a mixed economic environment. Second quarter cash flow from operations exceeded $275 million and the operating margin of 9.7 percent was the highest in nearly four years.
 "Our actions to strengthen the business continue. We are ahead of schedule to reduce costs and expenses by approximately $800 million on an annual basis by year-end 1992. We are pleased that our actions have increased profitability and enabled us to begin to utilize the tax benefits of operating loss carry-forwards starting with this quarter with an impact of 10 cents per share. The balance sheet is improving, helped by cash flow from operations of nearly $1 billion over the past 12 months. And we are optimistic that the financial and operating targets we have set for 1992 will be achieved and that we are now building a solid, focused foundation for future growth," Unruh said.
 Unisys said gross profit margins were the highest since 1988. Operating expenses continued to decline and were 11 percent below the same period one year ago. Interest expense dropped 24 percent on less borrowing and lower rates.
 Asset management progress continued with receivables down 15 percent from a year ago. Also, inventories declined 26 percent over a year earlier. Total debt net of cash declined more than $250 million in the quarter to $2.1 billion. The company's cash balance and marketable securities were approximately $1.3 billion at June 30, 1992.
 Unruh said, "While we continue to remain cautious about the timing and scope of a global economic recovery, we experienced some further signs of improvement in the U.S. information systems business unit. Its revenue and orders were well ahead of expectations with orders registering the strongest second quarter gain in four years. However, we continue to remain cautious about economic conditions in Japan and Europe."
 Unisys said total orders posted a small decline in the second quarter compared with the same period a year ago. Strong gains in U.S. information systems orders were partially offset by a decline in European orders. Information systems products registering the strongest gains worldwide for the quarter included large-scale mainframes, UNIX-based systems and professional services. Orders for Paramax Systems, which typically can vary sharply quarter to quarter, declined in the quarter.
 For the six months ended June 30, 1992, net income was $153.7 million. Earnings per common share were 56 cents including 10 cents from the tax benefit of operating loss carry-forwards in the second quarter. In the same period one year ago, the net loss was $1.4 billion including special pretax charges of $1.2 billion. A year ago, the loss per common share was $9.03.
 Revenue was $4.10 billion compared to $4.26 billion for the first six months in 1991. The company said revenue in the first six months of this year was essentially the same as a year ago after adjusting for the sale of its Timeplex subsidiary.
 UNISYS CORPORATION
 CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
 (Millions, except per share data)
 Three Months Six Months
 Ended June 30 Ended June 30
 1992 1991 1992 1991
 Revenue:
 Net sales $1,371.0 $1,438.8 $2,682.5 $2,731.8
 Service and rentals 717.5 764.0 1,415.5 1,529.9
 Total 2,088.5 2,202.8 4,098.0 4,261.7
 Costs and expenses:
 Cost of net sales 852.0 1,345.0 1,705.2 2,199.0
 Cost of service and rentals 412.1 566.4 838.1 1,043.5
 Selling, general and
 administrative 488.1 891.3 961.0 1,467.2
 Research and development 133.3 205.5 266.6 357.0
 Total 1,885.5 3,008.2 3,770.9 5,066.7
 Operating income (loss) 203.0 (805.4) 327.1 (805.0)
 Interest expense 80.4 105.6 164.0 215.5
 Other income (expense), net 11.2 (368.8) 37.8 (340.5)
 Income (loss) before income
 taxes and extraordinary
 item 133.8 (1,279.8) 200.9 (1,361.0)
 Estimated income taxes 45.4 20.0 64.2 37.0
 Income (loss) before
 extraordinary item 88.4 (1,299.8) 136.7 (1,398.0)
 Extraordinary item -- effect
 of utilization of operating
 loss carryforwards 17.0 --- 17.0 ---
 Net income (loss) 105.4 (1,299.8) 153.7 (1,398.0)
 Dividends on preferred shares 30.6 30.3 61.0 60.4
 Earnings (loss) on common
 shares $74.8 ($1,330.1) $92.7 ($1,458.4)
 Earnings (loss) per common share:
 Primary:
 Before extraordinary item $0.35 ($8.24) $0.46 ($9.03)
 Extraordinary item 0.11 0.00 0.11 0.00
 Total $0.46 ($8.24) $0.57 ($9.03)
 Fully diluted:
 Before extraordinary item $0.35 ($8.24) $0.46 ($9.03)
 Extraordinary item 0.10 0.00 0.10 0.00
 Total $0.45 ($8.24) $0.56 ($9.03)
 Shares used in the per share
 computations (thousands):
 Primary 163,768 161,480 163,650 161,500
 Fully diluted 167,842 161,480 165,863 161,500
 Note: At June 30, 1992 preferred dividends of $155.2 million are in arrears. Accounting rules governing the computation of earnings per share require that dividends on cumulative preferred stock, whether declared or not, be deducted in the earnings per share computation.
 UNISYS CORPORATION
 CONSOLIDATED BALANCE SHEET
 (Millions)
 June 30, Dec. 31,
 1992 1991
 (Unaudited) (Audited)
 Assets:
 Current assets:
 Cash and cash equivalents $1,278.2 $813.6
 Accounts and notes receivable, net 1,476.7 1,777.2
 Inventories
 Finished equipment and supplies 450.7 470.9
 Work in process and raw materials 511.1 553.9
 Other current assets 727.8 680.3
 Total 4,444.5 4,295.9
 Long-term receivables, net 315.1 404.8
 Rental equipment 535.7 601.8
 Less accumulated depreciation 420.8 458.1
 Rental equipment, net 114.9 143.7
 Properties 2,767.7 2,931.3
 Less accumulated depreciation 1,648.4 1,657.6
 Properties, net 1,119.3 1,273.7
 Cost in excess of net assets acquired 1,245.9 1,266.6
 Investments at equity 265.7 272.1
 Other assets 798.9 775.2
 Total $8,304.3 $8,432.0
 Liabilities and stockholders' equity:
 Current liabilities:
 Notes payable and current maturities of
 long-term debt $1,545.5 $590.8
 Accounts payable and accruals 2,346.5 2,692.6
 Estimated income taxes 356.3 379.6
 Total 4,248.3 3,663.0
 Long-term debt 1,847.8 2,694.6
 Deferred income taxes 60.0 60.0
 Stockholders' equity
 Preferred stock 1,578.0 1,578.0
 Common stock 1.6 1.6
 Accumulated deficit (343.3) (497.0)
 Other capital 911.9 931.8
 Stockholders' equity 2,148.2 2,014.4
 Total $8,304.3 $8,432.0
 UNISYS CORPORATION
 CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
 (Millions)
 Six Months Ended
 June 30,
 1992 1991
 Cash flows from operating activities:
 Net income (loss) $153.7 ($1,398.0)
 Add (deduct) items to reconcile net income
 (loss) to net cash provided by operating
 activities:
 Depreciation 194.5 252.8
 Amortization:
 Marketable software 65.5 155.7
 Cost in excess of net assets acquired 20.7 230.8
 Decrease in long-term receivables, net 88.9 219.9
 Decrease in accounts and notes
 receivables, net 282.0 538.4
 Decrease in inventories 63.0 88.0
 (Increase) in other current assets (47.5) (71.2)
 (Decrease) increase in accounts payable and
 other accrued liabilities (396.2) 339.8
 (Decrease) in estimated income taxes (23.3) (63.2)
 (Increase) decrease in other assets (48.3) 80.4
 Other 44.8 (10.3)
 Net cash provided by
 operating activities 397.8 363.1
 Cash flows from investing activities
 Proceeds from investments 1,089.6 1,968.6
 Purchase of investments (1,035.0) (1,943.3)
 Proceeds from sales of properties 64.9 50.6
 Investment in marketable software (45.4) (78.4)
 Capital additions:
 Properties (83.1) (93.2)
 Rental equipment (25.1) (40.6)
 Other 0.5
 Net cash used for investing activities (34.1) (135.8)
 Cash flows from financing activities
 Proceeds from issuance of debt 336.4 ---
 Principal payments of debt (104.1) (130.4)
 Net (payment of) proceeds from
 short-term borrowings (125.3) 218.2
 Dividends paid on preferred shares (26.5)
 Other 0.9 ---
 Net cash provided by financing activities 107.9 61.3
 Effect of exchange rate changes on
 cash and cash equivalents (7.0) (8.6)
 Increase in cash and cash equivalents 464.6 280.0
 Cash and cash equivalents, beginning of period 813.6 403.4
 Cash and cash equivalents, end of period $1,278.2 $683.4
 /delval/
 -0- 7/16/92
 /CONTACT: J. Peter Hynes of Unisys, 215-986-6948
 (UIS) CO: Unisys Corporation ST: Pennsylvania IN: CPR SU: ERN


LJ -- PH004 -- 9871 07/16/92 08:51 EDT
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