Ceridian Corporation Meets First Quarter Expectations

Investors are invited to listen to a teleconference to discuss the matters

addressed in this press release, live via the Internet at 10:00 a.m. (EDT) on

Wednesday, April 18, 2001. The webcast can be accessed through the investor

relations section of Ceridian's website at www.ceridian.com, or directly at:

http://www.ceridian.com/invest_audio.asp. A replay of the call will also be

available on an ongoing basis at the same address beginning at noon (EDT)

on April 18, 2001, until the Company's next teleconference.



First Quarter Highlights:

* Pro forma EPS from operations was $.13

* Reported EPS was $.16

* Revenue totaled $309.6 million

* Human Resource Services revenue totaled $233.1 million

* Human Resource Services orders up 15 percent; customer retention above

plan



Apr 18, 2001, 01:00 ET from Ceridian Corporation

    MINNEAPOLIS, April 18 /PRNewswire/ -- Ceridian Corporation (NYSE:   CEN)
 today reported first quarter 2001 pro forma net earnings from operations of
 $19.1 million or $.13 per diluted share of common stock on revenue of
 $309.6 million.  Comparable pro forma results from operations for the first
 quarter 2000 were net earnings of $26.5 million, or $.18 per diluted share of
 common stock, on revenue of $309.6 million.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010319/MNM007LOGO-a )
     Reported net earnings for the first quarter of 2001 were $23.1 million, or
 $.16 per diluted share of common stock, compared to first quarter 2000 net
 earnings of $20.9 million, or $.14 per diluted share of common stock.
     "Our Human Resource businesses and Comdata are performing in line with our
 expectations," said Ronald L. Turner, chairman, president and chief executive
 officer of Ceridian Corporation.  "Both business segments met their respective
 revenue and earnings targets despite difficult economic conditions.  Orders in
 our HR business were above plan, up 15 percent compared to the same period
 last year.
     "With respect to the sales initiatives for the U.S. payroll business, our
 hiring efforts are ahead of plan, and the experience levels of the people we
 hired exceeded our expectations.
     "Comdata was able to perform to our expectations in both revenues and
 operating profit despite a significant weakening in the freight markets.  For
 the balance of the year, given the increasing softness in the freight market,
 Comdata revenues from the transportation side of the business will not be as
 robust as planned.  Nevertheless, because of strength in Stored Value Systems
 and in our Human Resources business, we still expect earnings per share for
 the year to be in the range of 65 cents to 70 cents.
     "I am also extremely pleased to announce that John R. (Jack) Eickhoff, our
 chief financial officer, has agreed to delay his retirement until the end of
 2002," Turner added.
     Eickhoff, executive vice president and chief financial officer of
 Ceridian, said, "Unusual items and pro forma adjustments related to the
 Arbitron spin transaction have made this quarter's earnings report complex.
 The unusual items include a previously announced gain from the sale of stock
 in a small publicly-held company and a charge for the termination of an IT
 outsourcing contract.  We have attached six supporting schedules to this
 report to help investors and analysts understand and reconcile the results to
 their expectations."
     A brief description of each supporting schedule follows:
 
     *  Schedule A - Consolidated Statements of Operations.  This schedule
        shows the actual reported results for the first quarter.
 
     *  Schedule B - Condensed Consolidated Balance Sheets, including assets
        and liabilities related to funds held for payroll and tax filing
        customers.
 
     *  Schedule C - Revenue and EBIT Comparisons by Business Segment.
        (Excluding unusual items.)
 
     *  Schedule D - Reconciliation of reported earnings ($.16 per share) to
        pro forma operating results ($.13 per share) for Q1 2001.
 
     *  Schedule D1 - Consolidated Statements of Operations - Pro Forma.
        Comparison of pro forma results for Q1 2001 ($.13 per share) and
        Q1 2000 ($.18 per share).
 
     *  Schedule E - 2000 Quarterly Comparative Data.  Pro forma presentation
        effecting the spin-off of Arbitron as of 1/1/2000, excluding first
        quarter 2000 special charges and net spin costs, and adjusting for the
        anticipated change in debt levels and tax rates.
 
     -- On this basis, earnings per share for the first quarter and full year
        2000 were $.18 and $.70, respectively.
 
     Ceridian Corporation (www.ceridian.com) is a leading information services
 company that serves the human resources and transportation markets.
 Ceridian's human resources businesses offer HR/benefits solutions that support
 organizations' complete employment life cycle and maximize their investment in
 people.  Its Comdata subsidiary is a provider of transaction processing and
 information services to the trucking and retail industries.
 
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995.  The statements
 regarding Ceridian Corporation contained in this report that are not
 historical in nature, particularly those that utilize terminology such as
 "may," "will," "should," "likely," "expects," "anticipates," "estimates,"
 "believes" or "plans," or comparable terminology, are forward-looking
 statements based on current expectations and assumptions, and entail various
 risks and uncertainties that could cause actual results to differ materially
 from those expressed in such forward-looking statements.  Important factors
 known to Ceridian that could cause such material differences are identified
 and discussed from time to time in Ceridian's filings with the Securities and
 Exchange Commission, including those factors which are discussed in or
 incorporated by reference into Ceridian's Annual Report on Form 10-K, for the
 fiscal year ended December 31, 2000, which factors are also incorporated
 herein by reference.
     Ceridian undertakes no obligation to correct or update any forward-looking
 statements, whether as a result of new information, future events or
 otherwise.  You are advised, however, to consult any future disclosure
 Ceridian makes on related subjects in future reports to the SEC.
 
 
                                                                   Schedule A
 
     CONSOLIDATED STATEMENTS OF OPERATIONS           Ceridian Corporation
     (Dollars in millions, except per share data)        and Subsidiaries
     (Unaudited)
                                            For Periods Ended March 31,
                                                   Three Months
                                                 2001           2000
 
     Revenue                                 $  309.6       $  309.6
     Costs and Expenses
       Cost of revenue                          145.7          148.3
       Selling, general and
         administrative                         112.9           95.3
       Research and development                  15.9           15.1
       Other expense (income)                    (2.4)          31.1
          Total costs and expenses              272.1          289.8
 
     Earnings before interest and taxes          37.5           19.8
 
       Interest income                            1.8            1.0
       Interest expense                          (9.0)          (9.9)
 
     Earnings before income taxes                30.3           10.9
 
       Income tax provision                      12.4            4.4
 
     Earnings from continuing operations         17.9            6.5
 
       Discontinued operations                    5.2           14.4
 
     Net earnings                            $   23.1       $   20.9
 
     Basic earnings per share
       Continuing operations                 $   0.12       $   0.04
       Net earnings                          $   0.16       $   0.14
 
     Diluted earnings per share
       Continuing operations                 $   0.12       $   0.04
       Net earnings                          $   0.16       $   0.14
 
     Shares used in calculations
     (in thousands)
       Weighted average shares (basic)        145,790        144,787
       Dilutive securities                        766            738
       Weighted average shares (diluted)      146,556        145,525
 
 
                                                                   Schedule B
 
     CONDENSED CONSOLIDATED BALANCE SHEETS           Ceridian Corporation
     (Unaudited)                                         and Subsidiaries
     (Dollars in millions)
                                            March 31,      December 31,
                                              2001              2000
 
     Cash and equivalents                   $    73.2      $   118.5
     Trade receivables                          423.5          438.3
     Other receivables                           25.4           22.6
     Net assets of discontinued operations         --           28.2
     Other assets                             1,487.7        1,480.4
 
     Total assets before client funds         2,009.8        2,088.0
     Payroll and tax filing client funds      3,665.4        3,376.8
          Total assets                      $ 5,675.2      $ 5,464.8
 
     Debt                                   $   251.7      $   500.6
     Drafts and customer funds payable          186.0          172.1
     Other liabilities                          433.4          479.1
     Total liabilities before client
       obligations                              871.1        1,151.8
     Payroll and tax filing
       client obligations                     3,665.4        3,376.8
          Total liabilities                   4,536.5        4,528.6
     Stockholders' equity                     1,138.7          936.2
          Total liabilities and
           stockholders' equity             $ 5,675.2      $ 5,464.8
 
 
 
                                                                   Schedule C
 
                     Ceridian Corporation and Subsidiaries
                              Revenue Comparisons
                                     Actual
                                      ($M)
 
                                                  First Quarter
                                               2001           2000
 
     Human Resource Services                 $  233.1       $  233.8
     Comdata Corporation                         76.5           75.8
 
     Total                                   $  309.6       $  309.6
 
 
                     Ceridian Corporation and Subsidiaries
            Earnings Before Interest and Tax Comparisons (Pro Forma)
                            Excluding Unusual Items
                                     Actual
                                      ($M)
 
                                                  First Quarter
                                               2001           2000
 
     Human Resource Services                 $   19.0       $   35.4
     Comdata Corporation                         16.4           14.9
 
     Total                                   $   35.4       $   50.3
 
 
                                                                   Schedule D
 
                                                     Ceridian Corporation
                                                         and Subsidiaries
 
     CONSOLIDATED STATEMENTS OF OPERATIONS (PRO FORMA)
     EFFECTING THE SPIN-OFF AS OF 1/1/2000 AND EXCLUDING UNUSUAL ITEMS
     (Unaudited)
     (Dollars in millions, except per share data)
 
                                        For Periods Ended March 31, 2001
                                                   Three Months
                                           As        Unusual
                                        Reported      Items      Pro Forma
 
     Revenue                           $   309.6                $   309.6
     Costs and Expenses
       Cost of revenue                     145.7                    145.7
       Selling, general and
         administrative                    112.9                    112.9
       Research and development             15.9                     15.9
       Other expense (income)               (2.4)    $   2.1  (1)    (0.3)
         Total costs and expenses          272.1         2.1        274.2
 
     Earnings before interest
       and taxes                            37.5        (2.1)        35.4
 
       Interest income                       1.8                      1.8
       Interest expense                     (9.0)        4.1  (2)    (4.9)
 
     Earnings before income taxes           30.3         2.0         32.3
 
       Income tax provision                 12.4         0.8  (3)    13.2
 
     Earnings from continuing operations    17.9         1.2         19.1
 
     Discontinued operations                 5.2        (5.2) (4)      --
 
     Net earnings                        $  23.1    $   (4.0)     $  19.1
 
     Diluted earnings per share          $  0.16                  $  0.13
 
     Shares used in calculations
      (in thousands)                     146,556                  146,556
 
 
     (1)  Excluding a $12.3 million gain from the sale of stock in a small
          publicly-held company and a $10.2 million of unusual losses,
          principally a $6.6 million fee for termination of an IT outsourcing
          contract.
 
     (2)  Excluding interest expense savings resulting from assuming that the
          spin-off took place on 1/1/2000.
 
     (3)  Taxes on pro forma adjustments at 41%.
 
     (4)  Assuming that the spin-off took place on 1/1/2000.
 
 
                                                                  Schedule D1
 
                                                     Ceridian Corporation
                                                         and Subsidiaries
 
     CONSOLIDATED STATEMENTS OF OPERATIONS (PRO FORMA)
     EFFECTING THE SPIN-OFF AS OF 1/1/2000 AND EXCLUDING UNUSUAL ITEMS
     (Unaudited)
     (Dollars in millions, except per share data)
                                            For Periods Ended March 31,
                                                   Three Months
                                                2001           2000
 
     Revenue                                 $  309.6       $  309.6
     Costs and Expenses
       Cost of revenue                          145.7          148.3
       Selling, general and administrative      112.9           95.3
       Research and development                  15.9           15.1
       Other expense (income)                    (0.3)           0.6
          Total costs and expenses              274.2          259.3
 
     Earnings before interest and taxes          35.4           50.3
 
       Interest income                            1.8            1.0
       Interest expense                          (4.9)          (6.7)
 
     Earnings before income taxes                32.3           44.6
 
       Income tax provision                      13.2           18.1
 
     Net earnings                            $   19.1       $   26.5
 
 
     Diluted earnings per share              $   0.13       $   0.18
 
 
     Shares used in calculations
     (in thousands)                           146,556        145,525
 
 
                                                                   Schedule E
 
                                                         Ceridian Corporation
                                                             and Subsidiaries
 
     CONSOLIDATED STATEMENTS OF OPERATIONS (Pro Forma)
     EFFECTING THE SPIN-OFF AS OF 1/1/2000 AND EXCLUDING FIRST
     QUARTER 2000 SPECIAL CHARGES AND SPIN COSTS
     (Unaudited)
     (Dollars in millions, except per share data)
 
 
     2000 Quarterly Data              Q1       Q2       Q3       Q4       YTD
 
     Revenue                        $309.6   $283.1   $279.3   $303.7 $1,175.7
     Costs and Expenses
       Cost of revenue               148.3    141.1    135.4    134.2    559.0
       Selling, general and
         administrative               95.3     88.3     84.3     91.4    359.3
       Research and development       15.1     15.2     15.8     16.7     62.8
       Other expense (income) (1)      0.6      0.3      0.8     (0.5)     1.2
         Total costs and expenses    259.3    244.9    236.3    241.8    982.3
 
     Earnings before interest
       and taxes                      50.3     38.2     43.0     61.9    193.4
 
       Interest income                 1.0      0.8      1.0      1.9      4.7
       Interest expense (2)           (6.7)    (6.3)    (7.0)    (7.2)   (27.2)
 
     Earnings before income taxes     44.6     32.7     37.0     56.6    170.9
 
       Income tax provision (3)       18.1     13.3     15.0     21.9     68.3
 
     Net earnings                     26.5     19.4     22.0     34.7    102.6
 
 
     Diluted earnings per share      $0.18    $0.13    $0.15    $0.24    $0.70
 
     Shares used in calculations
     (in thousands)                145,525  146,755  147,530  147,462  146,734
 
 
     (1)  Excluding first quarter 2000 special charges of $30.5 million.
 
     (2)  Excluding interest expense savings resulting from assuming that the
          spin-off took place on 1/1/2000.
 
     (3)  Assumes an effective annual tax rate of 40.0%.
 
 

SOURCE Ceridian Corporation
    MINNEAPOLIS, April 18 /PRNewswire/ -- Ceridian Corporation (NYSE:   CEN)
 today reported first quarter 2001 pro forma net earnings from operations of
 $19.1 million or $.13 per diluted share of common stock on revenue of
 $309.6 million.  Comparable pro forma results from operations for the first
 quarter 2000 were net earnings of $26.5 million, or $.18 per diluted share of
 common stock, on revenue of $309.6 million.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010319/MNM007LOGO-a )
     Reported net earnings for the first quarter of 2001 were $23.1 million, or
 $.16 per diluted share of common stock, compared to first quarter 2000 net
 earnings of $20.9 million, or $.14 per diluted share of common stock.
     "Our Human Resource businesses and Comdata are performing in line with our
 expectations," said Ronald L. Turner, chairman, president and chief executive
 officer of Ceridian Corporation.  "Both business segments met their respective
 revenue and earnings targets despite difficult economic conditions.  Orders in
 our HR business were above plan, up 15 percent compared to the same period
 last year.
     "With respect to the sales initiatives for the U.S. payroll business, our
 hiring efforts are ahead of plan, and the experience levels of the people we
 hired exceeded our expectations.
     "Comdata was able to perform to our expectations in both revenues and
 operating profit despite a significant weakening in the freight markets.  For
 the balance of the year, given the increasing softness in the freight market,
 Comdata revenues from the transportation side of the business will not be as
 robust as planned.  Nevertheless, because of strength in Stored Value Systems
 and in our Human Resources business, we still expect earnings per share for
 the year to be in the range of 65 cents to 70 cents.
     "I am also extremely pleased to announce that John R. (Jack) Eickhoff, our
 chief financial officer, has agreed to delay his retirement until the end of
 2002," Turner added.
     Eickhoff, executive vice president and chief financial officer of
 Ceridian, said, "Unusual items and pro forma adjustments related to the
 Arbitron spin transaction have made this quarter's earnings report complex.
 The unusual items include a previously announced gain from the sale of stock
 in a small publicly-held company and a charge for the termination of an IT
 outsourcing contract.  We have attached six supporting schedules to this
 report to help investors and analysts understand and reconcile the results to
 their expectations."
     A brief description of each supporting schedule follows:
 
     *  Schedule A - Consolidated Statements of Operations.  This schedule
        shows the actual reported results for the first quarter.
 
     *  Schedule B - Condensed Consolidated Balance Sheets, including assets
        and liabilities related to funds held for payroll and tax filing
        customers.
 
     *  Schedule C - Revenue and EBIT Comparisons by Business Segment.
        (Excluding unusual items.)
 
     *  Schedule D - Reconciliation of reported earnings ($.16 per share) to
        pro forma operating results ($.13 per share) for Q1 2001.
 
     *  Schedule D1 - Consolidated Statements of Operations - Pro Forma.
        Comparison of pro forma results for Q1 2001 ($.13 per share) and
        Q1 2000 ($.18 per share).
 
     *  Schedule E - 2000 Quarterly Comparative Data.  Pro forma presentation
        effecting the spin-off of Arbitron as of 1/1/2000, excluding first
        quarter 2000 special charges and net spin costs, and adjusting for the
        anticipated change in debt levels and tax rates.
 
     -- On this basis, earnings per share for the first quarter and full year
        2000 were $.18 and $.70, respectively.
 
     Ceridian Corporation (www.ceridian.com) is a leading information services
 company that serves the human resources and transportation markets.
 Ceridian's human resources businesses offer HR/benefits solutions that support
 organizations' complete employment life cycle and maximize their investment in
 people.  Its Comdata subsidiary is a provider of transaction processing and
 information services to the trucking and retail industries.
 
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995.  The statements
 regarding Ceridian Corporation contained in this report that are not
 historical in nature, particularly those that utilize terminology such as
 "may," "will," "should," "likely," "expects," "anticipates," "estimates,"
 "believes" or "plans," or comparable terminology, are forward-looking
 statements based on current expectations and assumptions, and entail various
 risks and uncertainties that could cause actual results to differ materially
 from those expressed in such forward-looking statements.  Important factors
 known to Ceridian that could cause such material differences are identified
 and discussed from time to time in Ceridian's filings with the Securities and
 Exchange Commission, including those factors which are discussed in or
 incorporated by reference into Ceridian's Annual Report on Form 10-K, for the
 fiscal year ended December 31, 2000, which factors are also incorporated
 herein by reference.
     Ceridian undertakes no obligation to correct or update any forward-looking
 statements, whether as a result of new information, future events or
 otherwise.  You are advised, however, to consult any future disclosure
 Ceridian makes on related subjects in future reports to the SEC.
 
 
                                                                   Schedule A
 
     CONSOLIDATED STATEMENTS OF OPERATIONS           Ceridian Corporation
     (Dollars in millions, except per share data)        and Subsidiaries
     (Unaudited)
                                            For Periods Ended March 31,
                                                   Three Months
                                                 2001           2000
 
     Revenue                                 $  309.6       $  309.6
     Costs and Expenses
       Cost of revenue                          145.7          148.3
       Selling, general and
         administrative                         112.9           95.3
       Research and development                  15.9           15.1
       Other expense (income)                    (2.4)          31.1
          Total costs and expenses              272.1          289.8
 
     Earnings before interest and taxes          37.5           19.8
 
       Interest income                            1.8            1.0
       Interest expense                          (9.0)          (9.9)
 
     Earnings before income taxes                30.3           10.9
 
       Income tax provision                      12.4            4.4
 
     Earnings from continuing operations         17.9            6.5
 
       Discontinued operations                    5.2           14.4
 
     Net earnings                            $   23.1       $   20.9
 
     Basic earnings per share
       Continuing operations                 $   0.12       $   0.04
       Net earnings                          $   0.16       $   0.14
 
     Diluted earnings per share
       Continuing operations                 $   0.12       $   0.04
       Net earnings                          $   0.16       $   0.14
 
     Shares used in calculations
     (in thousands)
       Weighted average shares (basic)        145,790        144,787
       Dilutive securities                        766            738
       Weighted average shares (diluted)      146,556        145,525
 
 
                                                                   Schedule B
 
     CONDENSED CONSOLIDATED BALANCE SHEETS           Ceridian Corporation
     (Unaudited)                                         and Subsidiaries
     (Dollars in millions)
                                            March 31,      December 31,
                                              2001              2000
 
     Cash and equivalents                   $    73.2      $   118.5
     Trade receivables                          423.5          438.3
     Other receivables                           25.4           22.6
     Net assets of discontinued operations         --           28.2
     Other assets                             1,487.7        1,480.4
 
     Total assets before client funds         2,009.8        2,088.0
     Payroll and tax filing client funds      3,665.4        3,376.8
          Total assets                      $ 5,675.2      $ 5,464.8
 
     Debt                                   $   251.7      $   500.6
     Drafts and customer funds payable          186.0          172.1
     Other liabilities                          433.4          479.1
     Total liabilities before client
       obligations                              871.1        1,151.8
     Payroll and tax filing
       client obligations                     3,665.4        3,376.8
          Total liabilities                   4,536.5        4,528.6
     Stockholders' equity                     1,138.7          936.2
          Total liabilities and
           stockholders' equity             $ 5,675.2      $ 5,464.8
 
 
 
                                                                   Schedule C
 
                     Ceridian Corporation and Subsidiaries
                              Revenue Comparisons
                                     Actual
                                      ($M)
 
                                                  First Quarter
                                               2001           2000
 
     Human Resource Services                 $  233.1       $  233.8
     Comdata Corporation                         76.5           75.8
 
     Total                                   $  309.6       $  309.6
 
 
                     Ceridian Corporation and Subsidiaries
            Earnings Before Interest and Tax Comparisons (Pro Forma)
                            Excluding Unusual Items
                                     Actual
                                      ($M)
 
                                                  First Quarter
                                               2001           2000
 
     Human Resource Services                 $   19.0       $   35.4
     Comdata Corporation                         16.4           14.9
 
     Total                                   $   35.4       $   50.3
 
 
                                                                   Schedule D
 
                                                     Ceridian Corporation
                                                         and Subsidiaries
 
     CONSOLIDATED STATEMENTS OF OPERATIONS (PRO FORMA)
     EFFECTING THE SPIN-OFF AS OF 1/1/2000 AND EXCLUDING UNUSUAL ITEMS
     (Unaudited)
     (Dollars in millions, except per share data)
 
                                        For Periods Ended March 31, 2001
                                                   Three Months
                                           As        Unusual
                                        Reported      Items      Pro Forma
 
     Revenue                           $   309.6                $   309.6
     Costs and Expenses
       Cost of revenue                     145.7                    145.7
       Selling, general and
         administrative                    112.9                    112.9
       Research and development             15.9                     15.9
       Other expense (income)               (2.4)    $   2.1  (1)    (0.3)
         Total costs and expenses          272.1         2.1        274.2
 
     Earnings before interest
       and taxes                            37.5        (2.1)        35.4
 
       Interest income                       1.8                      1.8
       Interest expense                     (9.0)        4.1  (2)    (4.9)
 
     Earnings before income taxes           30.3         2.0         32.3
 
       Income tax provision                 12.4         0.8  (3)    13.2
 
     Earnings from continuing operations    17.9         1.2         19.1
 
     Discontinued operations                 5.2        (5.2) (4)      --
 
     Net earnings                        $  23.1    $   (4.0)     $  19.1
 
     Diluted earnings per share          $  0.16                  $  0.13
 
     Shares used in calculations
      (in thousands)                     146,556                  146,556
 
 
     (1)  Excluding a $12.3 million gain from the sale of stock in a small
          publicly-held company and a $10.2 million of unusual losses,
          principally a $6.6 million fee for termination of an IT outsourcing
          contract.
 
     (2)  Excluding interest expense savings resulting from assuming that the
          spin-off took place on 1/1/2000.
 
     (3)  Taxes on pro forma adjustments at 41%.
 
     (4)  Assuming that the spin-off took place on 1/1/2000.
 
 
                                                                  Schedule D1
 
                                                     Ceridian Corporation
                                                         and Subsidiaries
 
     CONSOLIDATED STATEMENTS OF OPERATIONS (PRO FORMA)
     EFFECTING THE SPIN-OFF AS OF 1/1/2000 AND EXCLUDING UNUSUAL ITEMS
     (Unaudited)
     (Dollars in millions, except per share data)
                                            For Periods Ended March 31,
                                                   Three Months
                                                2001           2000
 
     Revenue                                 $  309.6       $  309.6
     Costs and Expenses
       Cost of revenue                          145.7          148.3
       Selling, general and administrative      112.9           95.3
       Research and development                  15.9           15.1
       Other expense (income)                    (0.3)           0.6
          Total costs and expenses              274.2          259.3
 
     Earnings before interest and taxes          35.4           50.3
 
       Interest income                            1.8            1.0
       Interest expense                          (4.9)          (6.7)
 
     Earnings before income taxes                32.3           44.6
 
       Income tax provision                      13.2           18.1
 
     Net earnings                            $   19.1       $   26.5
 
 
     Diluted earnings per share              $   0.13       $   0.18
 
 
     Shares used in calculations
     (in thousands)                           146,556        145,525
 
 
                                                                   Schedule E
 
                                                         Ceridian Corporation
                                                             and Subsidiaries
 
     CONSOLIDATED STATEMENTS OF OPERATIONS (Pro Forma)
     EFFECTING THE SPIN-OFF AS OF 1/1/2000 AND EXCLUDING FIRST
     QUARTER 2000 SPECIAL CHARGES AND SPIN COSTS
     (Unaudited)
     (Dollars in millions, except per share data)
 
 
     2000 Quarterly Data              Q1       Q2       Q3       Q4       YTD
 
     Revenue                        $309.6   $283.1   $279.3   $303.7 $1,175.7
     Costs and Expenses
       Cost of revenue               148.3    141.1    135.4    134.2    559.0
       Selling, general and
         administrative               95.3     88.3     84.3     91.4    359.3
       Research and development       15.1     15.2     15.8     16.7     62.8
       Other expense (income) (1)      0.6      0.3      0.8     (0.5)     1.2
         Total costs and expenses    259.3    244.9    236.3    241.8    982.3
 
     Earnings before interest
       and taxes                      50.3     38.2     43.0     61.9    193.4
 
       Interest income                 1.0      0.8      1.0      1.9      4.7
       Interest expense (2)           (6.7)    (6.3)    (7.0)    (7.2)   (27.2)
 
     Earnings before income taxes     44.6     32.7     37.0     56.6    170.9
 
       Income tax provision (3)       18.1     13.3     15.0     21.9     68.3
 
     Net earnings                     26.5     19.4     22.0     34.7    102.6
 
 
     Diluted earnings per share      $0.18    $0.13    $0.15    $0.24    $0.70
 
     Shares used in calculations
     (in thousands)                145,525  146,755  147,530  147,462  146,734
 
 
     (1)  Excluding first quarter 2000 special charges of $30.5 million.
 
     (2)  Excluding interest expense savings resulting from assuming that the
          spin-off took place on 1/1/2000.
 
     (3)  Assumes an effective annual tax rate of 40.0%.
 
 SOURCE  Ceridian Corporation