Unisys Corporation announced today that it was taking aggressive actions
to reduce its costs. Unisys said that it is exploring a wide range of
cost-reduction options and that actions currently underway are expected
to reduce its annual cost structure by more than $225 million. The
cost-reduction actions are part of an overall program, led by new Unisys
Chairman and CEO Ed Coleman, to simplify the company’s business
structure, concentrate its resources more effectively, and drive
improved market success and profitability.
Unisys said its initial cost-reduction actions are focused on reducing
SG&A expenses and controlling or reducing labor costs across the board.
These actions to reduce costs include reductions in third-party
expenses, facility consolidations, headcount reductions of approximately
1,300 positions worldwide, and a suspension of company matching
contributions to the U.S. 401(k) plan, which had been costing about $50
million annually. The headcount reductions have begun and will continue
into 2009.
Along with the items above, the company also plans to forgo 2009 salary
increases in most of the company’s markets.
Unisys said it expects to take a fourth-quarter 2008 restructuring
charge in the $80 to $85 million range. The total cash requirements
related to the charge are expected to be about $70 to $75 million. The
charge will not require an acceleration of cash requirements, as
severance and facility charges will be paid out over severance and lease
periods.
About Unisys
Unisys (NYSE:UIS) is a worldwide information technology services and
solutions company. We provide consulting, systems integration,
outsourcing and infrastructure services, combined with powerful
enterprise server technology. We specialize in helping clients use
information to create efficient, secure business operations that allow
them to achieve their business goals. Our consultants and industry
experts work with clients to understand their business challenges and
create greater visibility into critical linkages throughout their
operations. For more information, visit www.unisys.com
.
Forward-Looking Statements
Any statements contained in this release that are not historical facts
are forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include, but
are not limited to, any projections of earnings, revenues, or other
financial items; any statements of the company’s plans, strategies or
objectives for future operations; statements regarding future economic
conditions or performance; and any statements of belief or expectation.
All forward-looking statements rely on assumptions and are subject to
various risks and uncertainties that could cause actual results to
differ materially from expectations. In particular, statements
concerning anticipated reductions in the company’s cost structure assume
that the company will fully and successfully implement the associated
cost reduction actions. The anticipated amount of anticipated cost
savings is also subject to currency exchange rate fluctuations with
regard to actions taken outside the U.S. Other risks and uncertainties
that could affect the company’s future results include general economic
and business conditions; the effects of aggressive competition in the
information services and technology markets on the company’s revenues,
pricing and margins and on the competitiveness of its product and
services offerings; the level of demand for the company’s products and
services and the company’s ability to anticipate and respond to changes
in technology and customer preferences; the company’s ability to retain
significant clients; the company’s ability to grow outsourcing and its
ability to effectively and timely complete the related solutions
implementations, client transitions to the new environment and work
force and facilities rationalizations; the company’s ability to continue
to effectively address its challenging outsourcing operations through
negotiations or operationally and to fully recover the associated
outsourcing assets; the company’s ability to drive profitable growth in
consulting and systems integration; the level of demand for the
company’s high-end enterprise servers and maintenance on those servers;
the risk that the company’s contracts may not be as profitable as
expected or provide the expected level of revenues and that contracts
with U.S. governmental agencies may be subject to audits, criminal
penalties, sanctions and other expenses and fines; the risk that the
company may face damage to its reputation or legal liability if its
clients are not satisfied with its services or products; the performance
and capabilities of third parties with whom the company has commercial
relationships; the risks of doing business internationally; the
potential business and financial risk in implementing future
acquisitions or dispositions; the potential for infringement claims to
be asserted against the company or its clients and the possibility that
pending litigation could affect the company’s results of operations or
cash flow. Additional discussion of these and other factors that could
affect Unisys future results is contained in its periodic filings with
the Securities and Exchange Commission. Unisys assumes no obligation to
update any forward-looking statements.
RELEASE NO.: 1222/8944
http://www.unisys.com/about__unisys/news_a_events/12228944.htm
Unisys is a registered trademark of Unisys Corporation. All other brands
and products referenced herein are acknowledged to be trademarks or
registered trademarks of their respective holders.
