EDS slashes dividend
PrintShareholders rethink holiday plans
Posted in Financial News, 28th July 2004 09:10 GMT
Free whitepaper – Thermal design of Dell PowerEdge server
EDS is cutting two thirds from its share dividend in an effort to save cash. Shareholders will receive 5 cents per share rather than 15 cents.
This should save the firm $50m a quarter.
Michael Jordan, chairman and chief executive EDS, said: "Our board carefully analysed the impact of this change on our shareholders and felt it prudent to free up additional funds to further enhance our competitiveness.
"The dividend cut will make it easier for EDS to fulfil its promise of achieving zero net debt by the end of the year, from about $4bn today." The announcement was made after the markets closed yesterday but shares still got hit in after-hours trading, falling nearly five per cent. EDS announces second quarter earnings later today. ®
Related stories
EDS wins $1.1bn gig with BoA
Moody's junk-rates EDS debt
EDS cuts losses
Analyst Keynote: The Register Agile Data Center Summit
10 Steps to a Successful CRM Implementation
Market Primer: ERP Systems
What Exchange can't do - and Dell can
Enabling The Agile Data Center
Dirty, dirty PCs: The X-rated picture guide
Top 500 supers - rise of the Linux quad-cores
Early adopters bloodied by Ubuntu's Karmic Koala
Sign up, sign up for The Register IT security newsletter