EDS: The Turnaround That Wasn't

It's being hurt by its dependence on large contracts whose profits are difficult to predict. And that's just one of its problems

In early February, Electronic Data Systems Corp. CEO Richard H. Brown was beaming as he welcomed analysts to the company's sprawling Plano (Tex.) headquarters. Enron Corp.'s collapse and the faltering economy had Corporate America rattled, but Brown had boosted 2001 profits 19%, to $1.36 billion, on a 12% gain in revenues, to $21.5 billion. He pledged this year would be even better, promising 13% to 16% revenue growth. "What other company has that vision, that annuity stream into the future?" he asked.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.