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Administration September 1, 2004
Analyst: Stepped Up Pension Costs Could Mean 2004 Earnings Hit
January 8, 2004 (PLANSPONSOR.com) - 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.
Reported by Fred Schneyer
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.