P.M. BRIEFING : Firm’s Restructuring Costs Rise
MINNEAPOLIS — Control Data Corp. expects 1989 restructuring costs to mount to more than $650 million with the addition of an expected fourth-quarter charge of $210 million, the computer maker said today.
With the restructuring charges, Control Data will incur a loss in the fourth quarter and for the year, the company said. Lawrence Perlman, Control Data’s president and chief executive officer, said exact results will be announced at the end of January.
For the first nine months of 1989, the company posted a net loss of $484 million, due largely to the shutdown in the second quarter of its supercomputer subsidiary, ETA Systems, and the streamlining of its mainframe business.
About half of the expected fourth-quarter charge of $210 million will stem from VTC Inc., a small computer-chip subsidiary that has never been profitable in its five-year history, the company said. Control Data said it expects to sell VTC this year.
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