FDC Announces Fourth Quarter Restructuring Charge
First Data Corp. has announced that it will take a restructuring charge in the fourth quarter of approximately $0.05 per share related to a reduction of about 3% of its workforce, primarily in the Card Issuing Services segment.
The company expects to take additional actions aimed at further reducing overall operating costs prior to the end of 2005 that would result in additional charges during the quarter."While these decisions are difficult, my focus continues to be on taking the steps necessary to position the company for growth, reduce operating costs and build shareholder value," said Ric Duques, chief executive officer. "While the restructuring charges we are taking to strengthen the company will reduce our GAAP earnings for the quarter, on an operating basis, the company is performing as expected. At this point in the holiday season, we are pleased with the performance of our Western Union, domestic merchant, and international businesses."
As a result of the restructuring charge announced today, and other anticipated charges, the company now expects GAAP earnings per share for 2005 to be below the previously stated range of $2.14 to $2.16. As the size of these additional charges has not been finalized, the company will not be providing earnings per share guidance for 2005.
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