rose modestly Friday after the market research company said it would slash about 5% of its workforce in an attempt to double its per-share earnings by 2002.
The cuts, which would reduce the company's payroll by 1,300 jobs, will come in Europe, the Middle East and Africa. ACNielsen said it expects to take $180 million in charges before taxes related to the reductions over the next three years: $70 million this year, $80 million next year and the remaining $30 million in 2002.
ACNeilsen was up 7/16, or 2%, to 19 5/16 in midday trading. (It closed up 13/16, or 4.3%, at 19 11/16.)
The company also reported earnings that were in line with Wall Street's expectations. Net income for the fourth quarter rose to $26.9 million, or 45 cents a diluted share, compared with $21.6 million, or 36 cents a share, in the year-earlier period.
Operating revenues for the fourth quarter rose 5% to $408.8 million, from $388.4 million in the comparable period a year earlier.
For the year, the Stamford, Conn.-based company posted net income of $57 million, or 99 cents a share, down slightly from $57.2 million, or $1 a share, in 1998.