Logica Stock Drops on Reorg, Job-Cut Plan

Logica Plc (LOG), an Anglo-Dutch computer services provider, fell the most in more than four months in London trading after saying it’s accelerating a reorganization as customers cut spending amid a “tougher” economy.

Logica dropped as much as 11 percent to 65.65 pence in the biggest intraday decline since Aug. 5, and was down 10 percent as of 8:15 a.m. The stock has dropped 49 percent this year.

Restructuring measures will eliminate more than 1,300 jobs with charges of 80 million pounds ($124 million) this year, the London-based company said in a statement today. The company will post a one-time cost of 39 million pounds in 2011.

The company said the job losses will affect the U.K., the Netherlands, Belgium and Sweden. The Benelux business will post a profit in 2012. The board reiterated that Logica will pay a final dividend of 2.3 pence a share for a full-year dividend of 4.4 pence, a 5 percent increase.

Logica said in November that third-quarter sales were lower than analysts’ estimates and reduced its full-year revenue forecast to growth of more than 3 percent from an estimated 5 percent, on a pro forma basis. Logica said today that it expects full-year revenue growth of about 3 percent.

To contact the reporter on this story: Manuel Baigorri in Madrid at mbaigorri@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.