Unisys Corp.'s expense for its U.S. qualified pension plan could double or triple in 2005, compared with the expected pre-tax expense of $38 million for 2004, because of "year-to-date stock market performance and the long-term interest rate environment," said Janet Haugen, CFO. Ms. Haugen said the estimate could "vary significantly" and that the company won't release 2005 pension expense estimates until it releases earnings in January.
Officials at the Blue Bell, Pa.-based company anticipate $56 million in pension expense related to the firm's non-U.S. pension plans, and Ms. Haugen said the pension expense for those plans could be "slightly higher" in 2005. Ms. Haugen said officials expect total cash funding of the company's $5.49 billion in pension assets to be roughly $66 million for 2004.
Unisys reported a third-quarter pre-tax pension expense of $23.5 million, compared with pre-tax pension income of $8.5 million in the third quarter of 2003.
The company contributed $62.5 million to its plans in 2003. She noted that 2005 pension contributions are expected to be "somewhat higher" than 2004 levels. The company isn't required to fund its U.S. qualified pension plan in 2004 or 2005, Ms. Haugen said.
Unisys also has a $2.4 billion defined contribution plan.