Feeds

EDS hit by US Airways' Chapter 11

Forecast slashed

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

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

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.