Commenting on its third quarter figures (good profits but incredible shrinking turnover – page five) Unisys Corp says it is concerned about economic weakness in major foreign markets and that short-term profit growth would be driven primarily by cost cutting rather than revenue growth: Unisys also said its client-server business, key to future growth plans, had actually declined in the third quarter and was below expectations for year so far; We are confident that investments being made in new services and products, together with the new organisation structure announced in August will, over time, result in the generation of profitable revenue growth, it said, But short term, profit and cash flow will be driven first by our streamlined cost structure; deterioration in European business accelerated in the quarter; Japan remained weak.
