Feeds

EDS hit by US Airways' Chapter 11

Forecast slashed

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

EDS (Electronic Data Systems) warned yesterday that its third quarter earnings would take a significant hit from US Airways' Chapter 11 filing on Sunday. The company slashed its forecast by almost a third following the news.

In previous forecasts EDS said it expected to lose between 23 and 33 cents per share in the second half of the year. It now says that its exposure to US Airways would likely absorb up to three cents of the earnings of five to ten cents EPS (earnings per share) that it was expecting for the quarter ending on 30 September.

According to The Financial Times, EDS said that it has $16m of assets and $27m worth of work in progress tied up in the stricken airline.

This kind of announcement would not be good news at any time, but it is particularly poor timing for the IT services company.

Last month, Moody's Investors' Service junked the group's credit rating, and only last week EDS announced that it will shed between 15,000 and 20,000 jobs over the next two years in its battle to reduce costs. These cuts are on top of the 5,000 or so redundancies it made over the last year. ®

Related stories

JP Morgan eats IBM outsourcing contract
US loses 400,000 IT jobs
EDS to cull workforce

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?