CSC Posts Increases in Profit, Sales
Computer Sciences Corp., which gets a third of its revenue from federal and local government agencies, said fiscal third-quarter net income rose 23% on increased sales to private-sector customers.
Net income rose to $157.5 million, or 82 cents a share, in the quarter ended Dec. 31, from $128.4 million, or 68 cents, a year earlier, the El Segundo-based company said. Sales rose 5.6% to $3.52 billion.
For the record:
12:00 a.m. Feb. 10, 2005 For The Record
Los Angeles Times Thursday February 10, 2005 Home Edition Main News Part A Page 2 National Desk 1 inches; 37 words Type of Material: Correction
Computer Sciences Corp. -- An article in Wednesday’s Business section on quarterly earnings for Computer Sciences Corp. said sales rose 5.6% to $3.52 billion. It should have added that the figures referred to revenue from continuing operations.
Analysts had expected a profit of 80 cents and sales of $3.96 billion, according to Thomson First Call.
Commercial sales grew 11% worldwide to $2.37 billion, or 67% of total revenue. On Dec. 23, the company won an extension of a contract with General Dynamics Corp., the largest maker of armored vehicles for the U.S. Army, that may be worth as much as $1.6 billion. U.S. government contracts fell 4.1% to $1.14 billion, or a third of overall sales.
Computer Sciences shares fell $1.43 to $50.57 in extended trading after results were announced. They had lost 43 cents to $52 in regular trading on the New York Stock Exchange. The shares gained 27% last year.
The company is selling its DynCorp International and DynMarine units and may use the $775 million in proceeds to reduce debt, buy back shares or fund acquisitions, it said.
