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Thursday, October 28, 1999 Published at 22:03 GMT 23:03 UK

Business: The Company File

EDS profits jump 47%

EDS won contracts worth $5.1bn in the third quarter

Profits at computer services company EDS jumped 47% in the third quarter.

The growth was driven by bumper contract signings of $5.1bn.

Profits reached $257.3m, prior to a restructuring charge of $236.3m, the company said.

The restructuring charge was linked to pay offs to 3,000 employees, who took an offer of redundancy in July.

EDS has further cost cutting planned and expects to take a fourth-quarter charge which it said could mirror charges taken in the first quarter, which totalled $379m.

In July, EDS chairman Dick Brown spearheaded a drive to cut $1bn from EDS's $17bn annual costs, including offering 8,000 employees early retirement, after having dropped 5,200 positions from a global workforce of 126,000.

Contract growth

In the third quarter, the company signed $5.1bn worth of new contracts, bringing total contracts so far this year to $13.7bn.

Revenues for the third quarter of 1998 were $4.7bn, a 10% increase on revenues in the same period in 1998.

Earlier this year, the computer consultancy company announced a strategic alliance with Microsoft, with the aim of allowing them to provide customers with end-to-end solutions.

EDS reported revenues of $16.9bn in 1998.

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