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Unisys Profit Skids 25 Percent

April 15, 2004

BLUE BELL, Pa. (AP) _ Unisys Corp.’s first-quarter net income fell about 25 percent from a year ago due to a fall in the value of its pension funds, the company said Thursday.

The Blue Bell-based information-technology provider had earnings of $28.9 million, or 9 cents a share, including pension costs of $22.2 million, for the latest quarter. In the same period a year ago, the company earned $38.5 million, or 12 cents a share, including pension income.

The Thomson First Call average of analyst estimates was for first-quarter income at 9 cents a share.

Excluding pensions, Unisys’ first-quarter earnings rose to $44 million, or 13 cents a share, from $34.2 million, or 10 cents a share, a year ago. The company booked pension income of $6.4 million a year ago.

First-quarter revenue rose 4.6 percent to $1.46 billion from $1.4 billion a year ago, helped by a weak U.S. dollar.

Unisys said it continued to make progress in improving its services operating margin, which is a ``key objective″ this year.

For the latest quarter, the company’s services operating margin improved 1.2 percentage points to 4.1 percent before pension accounting.

In morning trading, shares of Unisys fell 29 cents, or 2 percent, to $14.46 on the New York Stock Exchange.

The company expects second-quarter earnings per share of 14 cents to 17 cents before the effect of pensions.

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