Analyst: Stepped Up Pension Costs Could Mean 2004 Earnings Hit

January 8, 2004 ( - Some 27 US companies will have to take a hit on their 2004 earnings because of higher pension costs due to accounting rules, a Wall Street research report said.

Credit Suisse First Boston Corp. said an “earnings head wind” from the firms’ pension plans will reduce their 2004 earnings by more than $0.10 a share, Dow Jones reported. CSFB identified some of the affected companies as:

  • International Business Machines Corp.
  • Goodyear Tire & Rubber Co.
  • Unisys Corp.
  • Whirlpool Corp.

 “If the earnings head wind is larger than expected, it can have a negative effect on the stock price, as was the case recently for Unisys,” CSFB analyst David Zion wrote in the report.