EDS to Critics: Wait Till Next Year

Top execs say its cost-cutting drive will pay off in 2005 and the ailing tech-services provider now has a unifying strategy

Electronic Data Systems CEO Michael Jordan must be getting used to flying into the wind. Since coming out of retirement to take the helm in March, 2003, Jordan has seen EDS (EDS ) lose key contracts, miss Wall Street's earnings estimates, and, in July, suffer a credit-rating downgrade to junk. The latest: On Sept. 16, the troubled tech-services provider disclosed that third-quarter profits would slump by as much as $16 million as a result of reserves it expects to take related to the bankruptcy of client US Airways (UAIRQ ).

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