CSC Earnings Decline 52%; Sales Forecast Misses Estimates

Computer Sciences Corp. said Tuesday that fourth-quarter profit fell from the year-earlier period, which was aided by divestitures. Sales this quarter will trail analysts’ estimates.

Net income dropped 52% to $199.4 million, or $1.05 a share, from $411.8 million, or $2.13, a year earlier, the El Segundo-based company said. Sales were little changed at $3.88 billion in the period ended March 31.

Fourth-quarter profit excluding certain costs was $1.16 a share. Analysts surveyed by Thomson Financial had predicted, on average, profit of $1.13 and sales of $3.86 billion.

Computer Sciences, the No. 5 U.S. computer-services company, said last month that it was seeking a buyer. Chief Executive Van Honeycutt has fielded inquiries since at least last year, when a planned sale fell through.

Talk of a buyout may have caused some customers to hold off on making decisions about spending, analysts said.

Computer Sciences forecast first-quarter sales of $3.4 billion to $3.5 billion, below the $3.71-billion average estimate of analysts surveyed by Thomson Financial. Profit will be “in the mid-60-cent range” excluding stock-option costs of 4 cents a share, compared with analysts’ average projection of 69 cents.

Computer Sciences is eliminating 4,300 jobs in the fiscal year that began April 1 and an additional 700 positions in fiscal 2008 to lower costs by a combined $450 million.

Shares of Computer Sciences fell to $53.19 in extended trading. They fell 66 cents to $54.69 in regular trading and have gained 8% this year.