CSC Shares Up 7% After Company Announces Split

Computer Sciences Corp. on Tuesday said it plans to split itself into two publicly traded companies, and announced a $10.50 a share special cash dividend as part of the transaction. The Falls Church, Va. company said that one company will to serve global commercial and government clients, while the other will serve U.S. public-sector clients. The split is expected to be completed by October. "CSC began its turnaround three years go," CSC Chief Executive Mike Lawrie said in a statement. "That turnaround has progressed strongly, and our focus now turns to positioning the business for long-term growth and leadership. The best way to accelerate that transformation is by separating the company into two businesses," he said. CSC on Tuesday reported adjusted fiscal fourth-quarter earnings of $1.26 a share, up 10% from a year ago. Analysts polled by FactSet had expected earnings of $1.20 a share on the quarter. Shares of CSC rose 7% in after-hours trading, after ending the regular session down 0.9%.