DOW JONES NEWSWIRES
CA Inc. (CA) plans to cut about 1,000 positions, or 7.6% of its
work force, as part of a restructuring and consolidation plan while
also projecting earnings for its fiscal year at the low end of its
prior estimate.
Shares slipped 4% to $22.90 in premarket trading and are up 6%
so far this year.
CA, a maker of software for mainframe and other corporate
computers, has mostly seen its results hold up during the recession
as it has cut costs to match revenue. The company has also sought
to expand its sales by acquiring smaller and mid-sized companies
and buttress its cloud-computing products.
The company expects to complete most of restructuring actions,
which also include facility consolidations, by the end of its
fiscal first quarter ending in June.
CA, which has 13,200 employees, expects pretax restructuring
charges of $47 million for severance and $3 million for facilities
consolidation.
For the year ended March 31, CA now expects adjusted earnings at
the low end of the view it gave in December of $1.60 to $1.71 a
share.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356;
lauren.pollock@dowjones.com