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DUFF & PHELPS ANNOUNCES THAT WESTINGHOUSE ACTION IS CONSISTENT WITH RATING

 CHICAGO, Jan. 12 /PRNewswire/ -- Westinghouse announced several measures designed to resolve lingering financial and operating issues for the company and to set it on a firmer footing going forward. Duff & Phelps views these actions as consistent with the current rating level of 'BB+' (Double B Plus) on Westinghouse's senior debt; this rating was originally set in November 1992.
 These actions include a $500 million net charge related to restructuring of continuing operations and a $95 million charge to provide additional reserves for discontinued operations. The company also took a $255 million charge to adjust its rate of return and discount rate assumptions for its pension plans. As part of the $500 million restructuring charge, the company reserved for additional workforce reductions, anticipated divestiture of non-core businesses, and expected resolution of various legal liabilities and environmental clean-up costs. These restructuring measures are designed to reduce the cost structure and improve the operating performance of the continuing businesses. The company also announced that it plans to issue $500 million in preferred stock to strengthen the company's reduced equity base following the restructuring charges and that it will reduce the dividend from $.40 to $.20 per share.
 While we recognize these measure as positive steps, it is clear that progress toward strengthening cash flow and improving the company's financial condition will represent a slow and deliberate process, reflecting a slow rate of earnings growth going forward and limited financial flexibility. Although the company's planned exit from financial services is nearly complete, continuing businesses remain weak. Despite solid franchises in core broadcasting, power generation, and transport refrigeration businesses, slow growth in key markets continues to restrict earnings growth. Further, electronic systems is trending downward, with environmental services and furniture operations continuing to act as a drag on earnings.
 -0- 1/12/94
 /CONTACT: Albert Turner of Duff & Phelps, 312-630-4656/


CO: Westinghouse ST: IN: SU:

WB -- NY082 -- 1549 01/12/94 17:11 EST
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Publication:PR Newswire
Date:Jan 12, 1994
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