Westinghouse profit edged up in quarter, 1990

January 18, 1991|By Ted Shelsby

Westinghouse Electric Corp., the Pittsburgh-based parent company of Westinghouse Electronic Systems, which is adjacent to Baltimore-Washington International Airport, reported yesterday slight increases in its net income for both the fourth quarter of 1990 and the full year.

In the three months that ended Dec. 31, the company's net income increased 5 percent, to $284 million, or 97 cents a share, from $270 million, or 92 cents a share, in the fourth quarter of 1989, Westinghouse said in a statement.

Net income for the full year increased 8 percent, to $1 billion, or $3.41 a share, from $922 million, or $3.15 a share, in 1989.

Revenues for the fourth quarter were $3.7 billion, up 1 percent from $3.6 billion in the year-earlier quarter, the statement said. In 1990, full-year revenues were $12.9 billion, up slightly from $12.8 billion in 1989.

With adjustments for acquisitions and divestitures, however, Westinghouse's revenues for both the quarter and the year showed a 10 percent improvement, Chairman Paul E. Lego said.

"Despite the economic downturn, 1990 was a good year for Westinghouse," Mr. Lego said in the statement. "However, the recession and continuing worldwide economic uncertainty will make 1991 a challenging year."

He warned that the economic downturn and "reduced non-recurring income" would adversely impact Westinghouse's results in the first two quarters of 1991.

"Assuming no further deterioration in our markets, we expect a moderate decline in earnings for the full year. However, we expect profits from operations to remain strong," he added.

Operating profit for the Electronic Systems subsidiary was "substantially higher" for both reported periods because of "higher revenues and improved margins," the statement said.

A "strong performance" by the Power Generation Business Unit boosted revenues and operating profit for both the quarter and the year in the Energy and Utility Systems segment, the statement said. Operating profit for the Industries segment also rose because of increased revenues and improved profit margins in the Industries and Environmental Services Unit.

The Group W Broadcasting and Commercial segments also reported higher operating profit, the statement said, but operating profit in the financial-services segment was down "because of significantly lower results in Westinghouse Credit."

A spokesman for Westinghouse declined to provide the figures upon which the company based its assessments of individual segments' performance.

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