Computer services and hardware group Unisys has achieved its targeted earnings range for its 2002 fourth quarter and full financial year.
It has also reported better than expected cash flow in the fourth quarter and says it expects double-digit growth in earnings per share in the current financial year.
Net income for the fourth quarter rose to $89.1 million, or 27c a share, compared with a fourth-quarter 2001 net loss of $169.4 million, or a 53c a share loss. The 2001 figure included a pre-tax charge of $276.3 million for cost reduction actions.
Excluding this charge, net income in the fourth quarter of 2001 was $34.4 million, or 11c a share. Fourth-quarter 2002 revenue of $1.55 billion was essentially equal to revenue in the 2001 fourth quarter.
"Unisys ended a successful year with a strong fourth quarter," says Unisys Africa MD Barry Holt. "The company significantly grew its earnings and achieved a fourth-quarter operating profit margin of 9.7%, double its margin of a year ago."
This was driven by a sharp improvement in the services operating margins, which increased to 7.1% from 3% in the fourth quarter of 2001. The technology business achieved a 15.7% operating margin, an increase of more than 5%.
Major long-term services contracts signed during the quarter included a seven-year business process outsourcing (BPO) agreement with Washington Mutual, one of the largest financial institutions in the US.
Other contracts included a seven-year BPO contract from RAMS Home Loans in Australia, a seven-year BPO contract to provide cheque clearing and processing services for Malaysia`s Malayan Banking Berhad and a three-year contract from Germany`s Bavarian ministry of justice to provide a full range of managed infrastructure services.
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