Westinghouse says income fell 21.3%

July 26, 1995|By Ted Shelsby | Ted Shelsby,Sun Staff Writer

Westinghouse Electric Corp. has been warning shareholders the past month that the second-quarter results would be off, but when the numbers were released yesterday they were not as bad as expected.

Net income declined 21.3 percent to $59 million from $75 million in the second quarter of 1994. The company told investors in recent weeks that it expected earnings to be down between 30 percent and 40 percent. It said sales rose 8.9 percent to $2.3 billion.

Wall Street took the better-than-expected news in stride. Westinghouse shares rose 37.5 cents to close at $13.625.

The company said second-quarter results were adversely affected by a $5 million restructuring charge, or approximately 1 cent a share, related to the layoff of 340 workers among its worldwide operations.

About 275 of the layoffs were in the Linthicum-based Electronic Systems Group, but the majority were at the local division's torpedo plant in Cleveland, said Jack Martin, a Westinghouse spokesman.

Mr. Martin said only a "very small number" of workers were laid off in Maryland during the quarter.

Westinghouse said four operating units, Broadcasting, Electronic Systems, Thermo King, and Knoll, posted strong second-quarter performances.

He said about 90 percent of the expected layoffs have now been completed, with the remaining to come in the next several months.

The local unit, which is Maryland's largest manufacturing employer, has eliminated more than 7,000 jobs through layoffs and attrition since defense spending peaked in 1988. It now has 9,300 workers.

The company said revenues at its Anne Arundel County-based defense operations rose 33.5 percent, to $651.2 million, in the quarter.

Operating profits for the unit totaled $36 million, up 65.1 percent from the same period last year.

The results included the operations of Norden Systems, which Westinghouse acquired in May 1994.

The Power Generation division was a problem area for the company due to weak U.S. demand for maintenance and repair services at power plants.

... ... ... ... ... Ticker ... ... ... ... ... Yesterday's

... ... ... ... ... Symbol ... ... ... ... ... Cls. ... ... Chg.

... ... ... ... ... WX ... ... ... ... ... ... 13 5/8 .. .. .. + 3/8

Period ended

6/30/95 ... ... ... 2nd qtr. .. .. ... ... Year ago ... ... Chg.

Revenue ... ... ... $2,296,000 ... ... ... $2,108,000 .. .. +8.9%

Net Income .. .. .. $59,000 ... .. ... ... $75,000 .. .. .. -21.3%

Primary EPS ... ... $0.12 ... ... .. .. .. $0.16 ... ... .. -25.0%

... ... ... ... ... 6 mos. ... ... ... ... Year ago ... ... Chg.

Revenue ... ... ... $4,320,000 ... ... ... $3,851,000 .. .. +12.2%

Net Income .. .. .. $74,000 ... .. ... ... $111,000 ... ... -33.3%

Primary EPS ... ... $0.12 ... ... .. .. .. $0.23 ... .. ... -47.8%

Figures in thousands (except per share data)

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