EDS slashes dividend
Shareholders rethink holiday plans
EDS is cutting two thirds from its share dividend in an effort to save cash. Shareholders will receive 5 cents per share rather than 15 cents.
This should save the firm $50m a quarter.
Michael Jordan, chairman and chief executive EDS, said: "Our board carefully analysed the impact of this change on our shareholders and felt it prudent to free up additional funds to further enhance our competitiveness.
"The dividend cut will make it easier for EDS to fulfil its promise of achieving zero net debt by the end of the year, from about $4bn today." The announcement was made after the markets closed yesterday but shares still got hit in after-hours trading, falling nearly five per cent. EDS announces second quarter earnings later today. ®