Rebuilding year for Westinghouse


January 03, 1993|By Ted Shelsby

The new year promises to be challenging for Westinghouse Electric Corp., as the financially ailing company embarks on a dramatic restructuring.

Pittsburgh-based Westinghouse hopes to raise $3 billion by selling several divisions -- a move that will cut its size by about a third.

The goal: to retain businesses in which Westinghouse can be a world leader. And to restore investor confidence in the company, whose stock hit an 18-year low of $9.75 on Nov. 20.

The restructured Westinghouse will consist of:

* Electronic systems. The Linthicum-based defense electronics unit has been moving rapidly into new markets, such as the electric car, home security and electronic mail sorting.

* Environmental systems, which provides services for handling and disposing of toxic, chemical and nuclear waste.

* Power systems, which produces fossil and nuclear fuel power generation equipment.

* Thermo King Corp., a leading supplier of refrigeration units used on trucks, trailers, ships, buses and rail transportation.

* Westinghouse Broadcasting Co., which operates five television stations, including WJZ-TV/Channel 13 in Baltimore, and 16 radio stations in major markets.

Westinghouse Chairman Paul E. Lego says these units play into the company's strengths in high technology, its expertise in manufacturing and its understanding of how to work with customers to solve problems.

Based on analysts' estimates compiled by Bloomberg Business News, Westinghouse is expected to earn $1.36 per share in 1992, and $1.34 per share this year.

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