Unisys reports loss for third quarter and plans layoffs as chairman resigns
Article Abstract:
Unisys Corp announces a $356.8 million loss for the 3rd qtr of 1990 and plans to layoff 5,000 employees. The computer maker expects a loss for the 4th qtr of 1990 because of a continuing slowdown in order from Europe and the US. W. Michael Blumenthal, who is responsible for the growth strategy that has made the company particularly vulnerable, also resigns as chairman and director. Unisys announces that it will have trouble reducing its long-term debt between $600 and $800 million in 1990 although it says that it still hopes to cut debt between $1.2 billion and $1.6 billion in 1990 and 1991. The debt, which rose in the 3rd qtr of 1990, to $4 billion, from $3.7 billion, is the computer maker's biggest short-term problem.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Unisys faces some dire industry straits; computer giant's problems keep compounding
Article Abstract:
Unisys Corp has experienced more and more troubles in the past two years, and analysts are now pessimistic about the company's future. In the week of Sep 24, 1990, Unisys omitted its common stock dividend after nearly 100 years of paying one. Then, on Oct 7, Moody's Investment Service cut its rating on Unisys's debt, causing fears of a liquidity problem. The company's stock, which reached $17.125 in March, closed at $4 on Oct 5. In the computer market, the financial outlook of a manufacturer worries customers, who fear becoming technological orphans. Unisys's problems seem to be compounding.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
User Contributions:
Comment about this article or add new information about this topic:
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