EDS Sells Field Services Unit

Electronic Data Systems (EDS Quote - Cramer on EDS - Stock Picks) sold its European global field services business to A&O Systems and Services, the company said Tuesday.

In an 8-K filing with the Securities and Exchange Commission, EDS said it would take a charge to net income of $50 million for the fourth quarter from the deal, but it won't affect the previous guidance because the forecast excludes the impact of divestitures.

Approximately two-thirds of the $50 million charge (or 10 cents a share) should result in future cash expenditures, the company said, including $30 million of inter-company receivables to be paid to the divested business during the current quarter.

For the fourth quarter, the IT services and consulting company expects a pro forma EPS of 33 cents to 38 cents on sales of $5.5 billion to $5.7 billion. Wall Street estimates the company will earn 36 cents a share, and $5.56 billion on the top line.

EDS shares fell 3 cents in recent trading to $27.19.