TEKTRONIX INC. PROJECTS EARNINGS FOR THIRD QUARTER
TEKTRONIX INC. PROJECTS EARNINGS FOR THIRD QUARTER BEAVERTON, Ore., March 3 /PRNewswire/ -- Tektronix Inc.
(NYSE: TEK) announced today that it currently expects earnings from operations for its third fiscal quarter to be between $4.5 million and $7.5 million, or 15 cents and 25 cents per share. In addition, the company expects to incur pre-tax restructuring charges of approximately $16 million in the quarter. As a result, the company expects to record a loss in the quarter.
The restructuring charge is required due to the reorganization and consolidation of European operations, employment reductions to align the work force with current levels of business, the phase-out and closure of development projects which do not fit the company's strategic focus and the write-down of non-productive assets. The company plans to reduce worldwide employment by approximately 500 people in the next six months through attrition and layoffs. Total employment at the end of the second fiscal quarter was 11,528. The third fiscal quarter ends on March 7, and earnings are expected to be released on March 26. In last year's third quarter, the company earned $13.2 million or 45 cents per share on $397.8 million in sales. In the first half of the current fiscal year, the company earned $17.7 million or 60 cents per share on $591.8 million in sales. "The continued weakness in world economies, and in important markets such as the computer, military/aerospace and television industries, has prevented us from getting the sales growth we had expected. The difficult environment has also put pressure on margins," commented Jerome J. Meyer, chairman and chief executive officer of Tektronix. "Our order rate since the beginning of January has been below last year and below the expectations we had at the beginning of the quarter. "We are still seeing good growth in areas with solid new products, including color printers and mid-range digital oscilloscopes, but this strength has been offset by continued weakness in our television business, older graphic terminals and the overall test and measurement market. "Our near-term outlook is cautious, especially for the more mature and economically sensitive parts of the company. This, we believe we must reduce our costs further," Meyer added. "However, we also believe that the company's basic plan for the long term is sound. Our focus will remain on our three lines of business where we have large market shares and technology advantages, and we continue to invest in those businesses. We will also continue to make changes in the company to improve operating effectiveness, speed up new product introductions and reduce costs." Tektronix is a leading manufacturer of electronic products and systems in the areas of test and measurement, computer graphics and television systems. Revenues in fiscal 1991 totaled $1.3 billion from worldwide sales. -0- 3/3/92 /CONTACT: Fletcher Chamberlin of Tektronix, 503-627-7147/ (TEK) CO: Tektronix ST: Oregon IN: CPR SU: ERP
JH-LM -- SE004 -- 4602 03/03/92 16:00 EST
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|Date:||Mar 3, 1992|
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