CSC Profit Grows 17% in Quarter, Matching Estimates

Computer Sciences Corp. said profit grew 17% in its fiscal fourth quarter to $142.9 million, or 84 cents a share, as the computer service company’s contracts with the federal government surged.

The El Segundo-based company also said it was one of three lead contractors on a $2.5-billion agreement to provide computer services and software to the Army’s Aviation and Missile Command division.

The earnings performance matched the average estimate of analysts surveyed by First Call/Thomson Financial, although some estimates on the Internet were as high as 86 cents.

Sales rose 14% to $2.58 billion, with sales to the federal government up 16% to $651.2 million. The company won several major contracts in the quarter, including a $425-million agreement to provide technical services for the Air Force’s space launch facilities in Florida.

Chief Executive Van Honeycutt attributed the results to new contracts to manage and update computer systems as well as to revenue from a $3-billion agreement signed in late 1998 to modernize computers for the Internal Revenue Service.

The company restated its year-earlier results to reflect its acquisition of Nichols Research Corp. in November.

For the full fiscal year, Computer Sciences landed $11.3 billion in large contracts, more than double the rate of the previous year. Computer Sciences shares rose $1.13 to close at $80.50 on the New York Stock Exchange, before the earnings were released.