Compaq Warns of Loss, Unveils Restructuring

Compaq Computer Corp. said it expects a loss for the latest quarter as it struggles to recover from computer price wars and management woes. But the world’s largest maker of personal computers assuaged investors with $2 billion in cost cuts and a reorganization to accelerate sales. It said it would lose up to 15 cents a share in the second quarter, contrasted with analysts’ estimate of a 20-cents-a-share profit. The company said it will cut more jobs beyond the 15,000 it has eliminated since last summer. In April, Compaq said first-quarter profit would be half what Wall Street expected. Soon after, Chief Executive Eckhard Pfeiffer was ousted and half a dozen top managers left. Shares of the Houston-based company closed up 25 cents at $22.50 on the New York Stock Exchange.