Compaq sees job-cut savings of $75 million
Article Abstract:
Compaq announced that it would lay off 1,000 workers, about 10 percent of its workforce, and save $75 million in 1993, prompting a rise in the company's stock prices. Compaq's stocks rose eight percent in response to the announcement of layoffs, and also to estimates that the company's net income for 3rd qtr of FY 1992 would be higher than the 2nd qtr results of $29 million earnings, or 35 cents per share. The company's stock closed at $36.25 on Oct 8, 1992, on the New York Stock Exchange, an increase of $2.75. Compaq is attempting to recover from recent poor financial showings. In 1991, the company posted the first losses in its history and laid off its workers for the first time. Analysts predict Compaq will be cutting its prices to compete in a price war, although one analyst said that decreasing profit margins have lowered the value of Compaq investments.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Compaq Computer says supply woes won't halt growth
Article Abstract:
Compaq announces that it expects its record revenue growth not to be affected by a component shortage, even though Alex. Brown & Sons' has rated Compaq's stock neutral rather than buy. Alex. Brown, responding to Compaq's quarterly report predicting lower revenue due to components shortages, decreases their estimate of the company's full-year earnings from $2.55 per share to $2.29 per share. Compaq also announces that it will be continuing to cut its prices, which probably will mean continued decreases in its gross profit margins. Compaq's profit margins were 28.1 percent in 3rd qtr 1992, whereas they were 34.3 percent in 3rd qtr FY 1991.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Comment about this article or add new information about this topic:
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