Profit Plunges at Unisys

Profit plummeted at Unisys (UIS) as the company saw slowdowns in infrastructure services projects and enterprise server demand.

The Blue Bell, Pa.-based company said earnings fell to $19.4 million, or 6 cents a share, from $52.5 million, or 16 cents a share, a year earlier.

Excluding pension accounting charges, net income fell to $36.6 million, or 11 cents a share, from $47.2 million, or 14 cents a share, in the same period last year.

Unisys had cut its earnings guidance last week, citing "unexpected deferrals of certain enterprise server contracts and deferrals and delays on service projects late in the quarter" for the shortfall. The company said it "experienced the weakness primarily in the United States and in Latin America," and that it expected to report continued growth in consulting and systems integration.

Sales fell 3% to $1.39 billion, including a 4-percentage-point positive currency impact due to the weak dollar. The company attributed sales to a decrease in U.S. overall sales as well as flat to decreasing revenues across a handful of core business segments.

The company also revised its expectations for the third quarter and full year based on current business conditions. For the third quarter, the company expects to earn 8 cents to 12 cents a share on flat revenue from a year ago.

For the full year, the company expects to earn 68 cents to 72 cents a share on low-single-digit revenue growth.

Shares of Unisys were recently down 25 cents, or 2.3%, to $10.55.

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