news.yahoo.com/s/ap/20060404/ap_on_bi_ge/computer_sciences
AP Computer Sciences to Slash 5,000 Jobs By GARY GENTILE, AP Business Writer 20 minutes ago LOS ANGELES - Computer Sciences Corp. said Tuesday it plans to cut about 5,000 jobs, or about 6 percent of its work force, over two years and that a possible sale of the company is under consideration.
Computer Sciences said its board has decided to explore the company's options for improving shareholder value and has hired investment bank Goldman Sachs & Co. Media reports surfaced last year that defense contractor Lockheed Martin Corp. had considered making a bid with private investment groups. Earlier this year, reports were that Hewlett-Packard Co. Tuesday, Computer Sciences said it would cut its work force of 80,000 employees as part of a major restructuring to improve the company's cash flow and earnings. The restructuring plan involves 4,300 job cuts during fiscal 2007, which began Saturday, and 700 job cuts in fiscal 2008. Most of the reductions will come in Europe, the company said. "For some time it has been apparent to us, and to other companies in our industry, that there is excess capacity in certain geographies, particularly Europe," Chief Executive Van Honeycutt said in a statement. "After lengthy consideration, we have decided that this is an appropriate time to deal with the issue through a restructuring," Honeycutt said.
Internal Revenue Service and Defense Department, as well as to commercial clients. The company also is a major provider of consulting services. Most of its business is done in the US, but it is also a big player in Europe. The company's income for the third quarter, which ended last Dec. The company reported that income from its European operations declined 46 percent in the quarter. Analysts say separate bidders may emerge for the commercial and federal government units of the company. Its major competitors for commercial contracts are International Business Machines Corp. Analysts consider both companies, along with some smaller players, to be potential bidders. Computer Sciences is attractive because its shares have historically traded lower than its peers, according to William Loomis, an analysts at brokerage firm Stifel Nicolaus. "There is a lot of private equity money out there and this deal seems to be originating from private equity interest," Loomis said. The company also has long-term government deals, which provide the kind of predictable cash flow that would allow private equity firms to borrow more money based on the company's assets, he said. Other analysts said the company's restructuring plan would boost its earnings and cash generation, giving it the chance to command a higher buyout price. Computer Sciences said it expects to take a related charge of about $345 million this fiscal year and $30 million in fiscal 2008. Without those charges, the company expects the restructuring to save it about $150 million this fiscal year and $300 million in fiscal 2008.
Medical and Social Work Jobs Nationwide employment site specializing in the medical professions. Service is free and confidential to candidates and employer satisfaction is guaranteed.
President and Chief Executive Van Honeycutt is seen in an undated file photo. said on Tuesday it is exploring a potential sale of the company and announced a restructuring plan that will cut about 5,000 jobs, resulting in pretax savings of $450 million.
The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.
|
http://csua.com/feed/