EDS said it expected earnings for the fourth quarter to be 5 cents per share lower. The consensus among analysts surveyed by First Call had been for the company to post a profit of 52 cents per share.

EDS said the shortfall was related to certain aircraft lease agreements it struck with UAL Corp.'s (NYSE:UAL - News) United in 1991. It said the balance associated with those leases was about $40 million.

A final determination by United Airlines as to the status of these leases post-bankruptcy is not expected in the near term, EDS said in a statement. The No. 2 computer services company behind International Business Machines Corp. (NYSE:IBM - News) said it has no other significant commercial relationships with United Airlines.