5 Westinghouse units now are one company New division to have headquarters here

November 02, 1995|By Ted Shelsby | Ted Shelsby,SUN STAFF

Westinghouse Electric Corp. has grouped four of its businesses with close ties to its Linthicum operations and its Pittsburgh-based phone company to form a new company that will have sales of about $225 million a year.

Westinghouse Communication and Information Co. will have its headquarters in the Baltimore area and will be headed by Richard J. Hadala, 38, who most recently served as vice president of strategic management at Westinghouse headquarters in Pittsburgh.

Nicholas P. Heymann, an analyst who follows Westinghouse for NatWest Securities Corp. in New York, said Westinghouse may or may not be grouping the businesses for future sale. He said each of the units "have decent potential for growth and have never been a problem for Westinghouse."

But, he said, the new company "is not a core business of Westinghouse. It is not the heart and soul of the company."

Mr. Hadala will report to Francis J. Harvey, president and chief executive of Electronic Systems Group.

"The consolidation of these complementary high-tech businesses into one company will enable us to more quickly realize the growth that these businesses promise," Mr. Harvey said.

Jack Martin, a spokesman for the Linthicum division, said the new company will have about 2,300 employees, the "vast majority" of them outside Maryland. He said a site for the company's headquarters has not been selected.

The five business units of the new company are:

* Wireless Communications -- Based in Linthicum, it will provide the ground stations and the telephone receivers for a mobile satellite communications system that Westinghouse is developing with Washington-based American Mobile Satellite Corp. and TMI Communications of Canada.

* Residential Security Systems -- This Dallas unit is one of the country's largest suppliers of home security systems.

* Commercial Security -- Also located in Dallas, it provides electronic sensors that read security cards that allow personnel to enter corporate and commercial properties.

* Audio Intelligence Devices -- Based in Fort Lauderdale, Fla., it provides surveillance systems for law enforcement application. Products include audio and video systems, night vision devices and sensors for drug detection.

* Westinghouse Communications Inc. -- This is the telephone company of Westinghouse. It provides voice and data communication and serves as the long-distance carrier for the company and commercial customers.

Based on a teleconference session with Westinghouse's chief financial officer Friday, Mr. Heymann of NatWest said he expects the company to sell off some of its businesses before the end of the year.

"They could sell Power Generation, Energy Systems and possibly Electronic Systems in sales that could bring $5 billion to $6 billion," Mr. Heymann said.

Westinghouse has said it will sell assets worth between $1.5 billion and $2 billion to help pay for its planned $5.4 billion purchase of CBS Inc.

Mr. Hadala joined Westinghouse in January 1994. He previously served as a partner at McKinsey & Co. Inc., where he focused on consumer and industrial clients.

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