Printer Friendly

CENTRAL AND SOUTH WEST CORPORATION ANNOUNCES EARLY RETIREMENT PROGRAM

 DALLAS, Jan. 7 /PRNewswire/ -- Central and South West Corporation (NYSE: CSR) today announced an early retirement program as part of the ongoing organizational restructuring of the company. Costs from this program, as well as other reorganization-related costs, will have an effect on 1993 earnings.
 Reorganization-related costs are estimated to be approximately $100 million and include early retirement, severance packages, relocation and other transition costs. According to CSW Chairman E.R. Brooks, CSW has decided to record these reorganization costs as expenses in 1993. Savings from the restructuring are expected to begin in the second half of 1994. By the end of 1995, initial costs should be fully recovered through operations and maintenance cost savings.
 In November, CSW announced a new management structure which, according to CSW Chairman Brooks, is designed to advance the corporation as one of the country's leading energy suppliers and competitively position it for the future.
 Management is considering other potential 1993 adjustments, such as implementation of accounting changes and re-evaluation of various assets. Accounting changes may include recording of unbilled revenues and early adoption of SFAS 112, a new accounting standard which prescribes accounting for post-employment benefits. These changes would be in line with current industry practices and would further enhance the company's competitive position. Other items affecting 1993 earnings are the outage at the South Texas Project, mild weather in Central Power and Light Company's service territory and lower margins at Transok.
 Central and South West Corporation, a Dallas-based public utility holding company, owns Central Power and Light Company, Public Service Company of Oklahoma, Southwestern Electric Power Company and West Texas Utilities Company. The four utilities provide electric service to 1.6 million customers in a service area covering 152,000 square miles of Texas, Oklahoma, Louisiana and Arkansas.
 Central and South West also owns Transok, Inc., an Oklahoma intrastate natural gas transmission and processing subsidiary; Central and South West Services, Inc.; CSW Energy, Inc.; CSW Credit, Inc.; and CSW Leasing, Inc.
 -0- 1/7/94
 /CONTACT: Sharon R. Peavy, director, investor relations of Central and South West Corporation, 214-777-1277/
 (CSR)


CO: Central and South West Corporation ST: Texas IN: UTI SU:

SP -- NY013 -- 0052 01/07/94 09:25 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 7, 1994
Words:366
Previous Article:HEALTH CARE BENEFITS SHIFT, SAYS PRICE WATERHOUSE
Next Article:DOT AWARDS $1.5 MILLION TO 43 STATES FOR RAIL ASSISTANCE
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters