Unisys Corp. (NYSE: UIS) is going to be back in the same boat it was in before its current management tried to turn this ship around. CEO Joe McGrath, who joined in 2005, is stepping down by the end of the year. He will maintain running many day-to- day operations while a replacement is sought.
The company said that the board of directors and Mr.McGrath both agreed that a change in leadership would best enableUnisys to move forward on accelerating execution of the company’sstrategy. Unfortunately, its turnaround never fully turned.
Shares closed at $3.15 yesterday and the 52-week trading range is $2.85to $7.90. In the first half of 2007 this stock had reached $9.00 onhopes that the turnaround was afoot. The company might be able toblame the economy and IT-outsourcing, but it can’t really blame a weakconsumer nor the credit crunch.
Whilegetting rid of a manager who didn’t turn the ship can be good, it meansthe turnaround hasn’t worked and the ship has no captain in choppyseas.
Jon C. Ogg
September 23, 2008