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TOUGH MEASURES PUT WESTINGHOUSE ON TRACK, CHAIRMAN REPORTS

 TOUGH MEASURES PUT WESTINGHOUSE ON TRACK, CHAIRMAN REPORTS
 PITTSBURGH, April 29 /PRNewswire/ -- Westinghouse Electric Corporation (NYSE: WX) has adopted a series of tough initiatives intended to correct problems and enable management to concentrate on the fundamentals of improving the quality of earnings, shareholders were told here today.
 Speaking before about 1,500 shareholders at the Westinghouse annual meeting at Heinz Hall, Chairman Paul E. Lego said:
 "The past year has been one of the most challenging that we have endured in our 106-year history. As a result, we've had to take some tough measures. But there's no doubt that each and every one of them was necessary.
 "Despite all our recent challenges, we have good businesses and markets with the potential for significant growth. However, we can capture these opportunities only if we have a solid base from which to grow. It is my intention and plan to do whatever is needed to assure this base is in place."
 Lego noted that the core businesses of Westinghouse earned almost $1 billion of operating profit in 1991 and that the first quarter of 1992 was substantially better than the same quarter last year.
 "1992 will not be a year of miracles," he said. "It will be a year of transition -- of very hard work in dealing with the fundamentals of market penetration and margin improvement."
 Reviewing the past year, the chairman told shareholders the corporation had:
 -- Secured a $6 billion revolving credit agreement with a group of
 50 banks;
 -- Placed $375 million worth of Westinghouse stock into the
 pension plan;
 -- Reduced the dividend to a level more in line with current
 earnings;
 -- Restored a proper debt-to-equity balance through the sale of
 22.5 million shares of stock, raising $600 million in new
 equity, and embarked on the issuance of Preferred Equity
 Redemption Cumulative Stock (PERCS) to raise an additional
 $500 million; and
 -- Implemented a $200 million corporate-wide cost-reduction
 program.
 Regarding Westinghouse Financial Services, Lego said: "We're making steady progress in reducing both portfolio assets and debt. The corporation's overall objective is to continue downsizing the unit until it can service its own debt and support its own credit rating. We're confident we've taken the right actions for Financial Services.
 "Westinghouse remains a fundamentally strong corporation. In the long term, the strategy will be to focus on growing each of the core businesses. Internationally, the emphasis will be on strategic alliances that enable Westinghouse to commercialize new technologies, source equipment and achieve in-country positions in foreign markets."
 In the business segment of the meeting, shareholders re-elected four directors -- Robert W. Campbell, Rene C. McPherson, Richard M. Morrow and Leo W. Yochum. Shareholders also re-elected Price Waterhouse as outside public accountants, approved an amendment to the long-term incentive plan and approved a deferred stock and compensation plan for directors. One shareholder proposal was defeated.
 -0- 4/29/92
 /CONTACT: Robert L. Henderson of Westinghouse Electric, 412-642-3117/
 (WX) CO: Westinghouse Electric Corporation ST: Pennsylvania IN: CPR ARO OIL TRN SU:


CD -- PG002 -- 4277 04/29/92 10:30 EDT
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Publication:PR Newswire
Date:Apr 29, 1992
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