Westinghouse and IBM report 1991 losses

January 17, 1992

Westinghouse Electric Corp. and International Business Machines Corp., two of the nation's largest companies, said today that they lost money in 1991. Neither report was a surprise, because the companies have announced corporate restructurings, including layoffs in Maryland.

Westinghouse Chairman Paul E. Lego blamed the loss on its troubled financial services unit.

In 1991, Westinghouse lost $1.09 billion, or $3.46 a share, on revenues of $12.8 billion. In 1990, the company had a $268 million profit, or 91 cents per share, on revenues of $12.9 billion.

The company also said operating profit for its Linthicum-based Electronic Systems division fell substantially in the quarter and for the year, due to poor sales and costs associated with expanding the non-defense business.

Fourth-quarter 1991 net income was $171 million, or 51 cents per share, on revenues of $3.4 billion. The company lost $449 million, or $1.53 per share, on revenues of $3.7 billion in the fourth quarter of 1990.

IBM, facing stiff competition from other computer companies, said it lost $2.8 billion in 1991, due to two huge accounting charges against earnings the company took to pay for retiree benefits and a cost-cutting program. IBM also reported its first year-to-year drop in revenue since 1946. Revenues fell 6.1 percent, to $64.8 billion.

In 1991's fourth quarter, IBM lost $1.4 billion, or $2.42 a share, due to the $3.4 billion charge to pay for the cost-cutting program.

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