EDS Says US Airways’ Woes Will Cut Profit
From Bloomberg News
Computer services company Electronic Data Systems Corp. said US Airways Group Inc.’s bankruptcy filing would cut its profit, the second time that’s happened in two years.
Plano, Texas-based EDS is setting aside reserves for a contract with the Arlington, Va.-based airline, which sought Chapter 11 Bankruptcy Court protection Sunday. That will reduce third-quarter profit by as much as 3 cents a share, EDS said in a filing.
Electronic Data Systems’ profit has been trimmed in the last two years by bankruptcies at United Airlines parent UAL Corp. and US Airways and losses at American Airlines parent AMR Corp.
Electronic Data shares rose 27 cents to $20.10 on the New York Stock Exchange.
