Westinghouse expected to show profit in 1992 But chairman warns his predictions were wrong in past

April 29, 1992

PITTSBURGH -- Westinghouse Electric Corp., Maryland's largest employer, should record a profit in 1992, Chairman Paul E. Lego said today. But he warned that his forecasts have been wrong in the past, referring to an overly optimistic outlook in 1990 for the 1991 year.

But an improvement in the economy this year and cost-cutting measures implemented last year might enable the company to be profitable in 1992 and avoid large-scale job cuts, Mr. Lego said.

Last year, Westinghouse cut at least 4,000 jobs as a result of its financial trouble.

Many of those cuts came in Maryland, where the Westinghouse Electronic Systems division makes radar and other defense-related products. The plant, near Baltimore-Washington International Airport, has been diversifying into non-defense areas, including home security and postal service equipment.

Mr. Lego said no further layoffs are planned. But he added, "We may still do some trimming here and there in terms ofemployment."

In 1991, Westinghouse had a net loss of $1.08 billion or $3.46 a share on revenues of $12.8 billion. The company took $2.6 billion in charges in 1990 and 1991 as a result of loan losses in its credit unit.

Mr. Lego said that the company had considered selling some core businesses last year to raise cash, including the broadcasting unit. But he said, "We don't have to sell any of the major portfolio business."

Westinghouse continues to try to sell off loans of its troubled credit unit, he said, adding "We're making significant progress downsizing our financial operations while funding commitment."

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