Computer Sciences Job Cuts to Hurt Earnings

Computer Sciences Corp. will take a fiscal fourth-quarter charge of $100 million to $150 million for the 700 to 900 job cuts announced Friday, Chief Executive Van Honeycutt said. Fiscal fourth-quarter sales will be about 2% less than expected, and the company expects fiscal 2002 earnings of $2.50 to $2.60 a share, Honeycutt said in a conference call. The El Segundo-based company was expected to earn $2.60, according to analysts polled by First Call/Thomson Financial. Shares of Computer Sciences rose 30 cents to close at $33 on the NYSE. The stock sank 40% on Friday after the company announced the job cuts and reduced its profit outlook.