Electronics, power giant posts gain

April 22, 1994|By Bloomberg Business News

PITTSBURGH -- Westinghouse Electric Corp., which had warned Wall Street last month that first-quarter earnings could fall to 4 cents a share, surprised many analysts yesterday by posting better results.

Westinghouse posted net income of $36 million, or 7 cents a share, compared with a profit before special items of $59 million, or 14 cents, a year earlier. Wall Street had expected Westinghouse to earn about 5 cents a share, according to Zacks Investment Research.

Several analysts said they were encouraged by the earnings surprise because Westinghouse is still struggling to recover after three consecutive years of losses caused by defense cutbacks and the company's disastrous foray into financial services.

"It's the first ray of sunshine, the dark before the dawn," said Kemp Fuller, an analyst at RAS Securities. "Westinghouse was profitable on an operating basis. That's a positive."

Westinghouse stock rose 25 cents yesterday, to close at $11.375, on the New York Stock Exchange.

This year's profit was inflated by a gain of $30 million, or 5 cents a share after taxes, from the sale of two radio stations. In 1993, Westinghouse reported a $25 million gain from a change in accounting for nuclear fuel revenues.

Including the gain and charge of $56 million for accounting changes,Westinghouse's net income in the first quarter of 1993 was $3 million, with a per-share loss of 2 cents after paying preferred dividends.

First-quarter revenue fell 14 percent, to $1.74 billion, reflecting the continuing downturn in three of Westinghouse's major businesses: electronics systems, energy systems and power generations businesses.

Revenue for the Electronic Systems Group, headquartered in Linthicum, fell 24.5 percent, to $449.9 million, mainly because of the government's cancellation of an airborne protection systems program.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.