Unisys to omit common stock dividend; already depressed stock slumps 23%

Article Abstract:

Unisys Corp will omit the company's quarterly dividend of 25 cents a share on common stock, which caused the already-depressed stock to fall 23 percent. In an interview CEO James Unruh expressed doubts about earlier assurances that Unisys would be profitable for the full year. The company is hurt by the slowing world economy. In addition, Unruh says that business in Europe, which had been especially significant for Unisys, has weakened. Unisys continues to make progress on reducing debt, and the company expects to meet a target of a $600 million to an $800 million reduction during 1990. Unruh says he believed that it would be prudent to omit the dividend because it would save Unisys nearly $160 million a year. He said he expected the move to maximize the company's stock value, but this did not happen in the short term. The stock fell $1.625 to $5.375 in trading on the New York Stock Exchange.

Stock-exchange, Stock exchanges, Statistics, Stock markets, column, Stock Market

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Unisys suspends its dividends on preferred: decision reflects struggle with $3.7 billion debt; price of common jumps

Article Abstract:

Unisys Corp suspends dividend payments on its preferred stock in an attempt to further reduce its heavy debt of nearly $3.7 billion. The move to withhold dividend payments in Feb 1991 will save the computer maker around $120 million a year. Unisys' preferred stock tumbled $3 a share and closed at $8 a share on Feb 11, 1991. The company's common stock closed at $4.50 a share for the day. Unisys posted a loss of nearly $436.7 million for 1990, which brings the loss for 1989 and 1990 up to $1.1 billion on annual sales of $10 billion. The computer maker suspended dividend payments on its common stock in Sep 1990, a move which will save it around $160 million a year.

Business planning, Debt, Preferred stocks, Stockholder

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Unisys' debt is downgraded; stock slumps; Moody's rating is below investment grade; price of shares slides 22.5%

Article Abstract:

Unisys Corp's stock falls 22.5 percent to $3.875 at closing Oct 2, 1990, after Moody's Investors Service Inc downgrades its rating on the firm's debt to below investment grade. Moody's move affects about $5.2 billion in securities. The new rating effectively denies Unisys access to the market for commercial paper. Unisys is now at the mercy of its banks. The company's earnings prospects have weakened with the US economy. Unisys's business in Europe has also slowed. Unisys's stock has fallen steadily from a March 1990 high of $17.125 on the New York Stock Exchange.

Security & commodity services, not elsewhere classified, Evaluation, Moody's Investor Service, Credit Rating

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