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.
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