Expanding on Unisys’ comments on its third quarter figures (see Company Results), the company said that strength in its international computer operations, and lower taxes, offset lower than-anticipated order and shipment levels in the US. An internal problem is that there is a short-term hiatus as customers shift from the current 1100 product line to […]
Expanding on Unisys’ comments on its third quarter figures (see Company Results), the company said that strength in its international computer operations, and lower taxes, offset lower than-anticipated order and shipment levels in the US. An internal problem is that there is a short-term hiatus as customers shift from the current 1100 product line to the new 2200 line, which ship in volume beginning next spring, but The cross currents affecting this quarter’s results will most likely persist over the next half year, chairman Michael Blumenthal warned. Our international business is expected to continue to show good growth, but the weak conditions in the US computer market along with the tight US defence budget and the renewed strength of the US dollar will likely limit our overall revenue growth over the next two quarters. As a result, the company is taking a more conservative approach in its planning assumptions for 1989. Our business plan for 1989 will budget costs and expenses to be in line with single-digit revenue and double-digit earnings growth targets, Blumenthal said: while we are planning for a slower start for next year than previously anticipated, we remain optimistic about the company’s overall strategy and the market opportunities that we are pursuing. Even with the uncertain US computer environment, we expect to benefit in 1989 from a favourable mainframe product cycle that already is supported by a strong order pattern, cost savings and synergies achieved in the acquisition of Convergent Inc and overall tight cost controls, he concluded.
