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WESTINGHOUSE CUTS DIVIDEND, APPROVES $500 MILLION EQUITY OFFERING

 WESTINGHOUSE CUTS DIVIDEND, APPROVES $500 MILLION EQUITY OFFERING
 PITTSBURGH, Jan. 29 /PRNewswire/ -- The board of directors of the Westinghouse Electric Corporation (NYSE: WX) today reduced the company's quarterly dividend to 18 cents per share from 35 cents and authorized the issuance of approximately $500 million of preferred equity redemption cumulative stock (PERCS), Chairman Paul E. Lego announced.
 Directors approved the dividend, payable March 1 to shareholders of record Feb. 8.
 "These steps are consistent with our determination to strengthen the company and complement our recent actions," Lego said. "Those actions included the establishment of a $6 billion line of credit, a $1.68 billion valuation provision for our financial services subsidiary, the generation of $700 million in cash from the sale of financial services assets, and implementation of a $200 million corporate-wide cost-reduction program.
 "These measures, combined with a strong cash flow from operations, are sufficiently far-reaching to provide a sound capital structure and meet our financial needs. Nevertheless, we will continue the orderly reduction of assets at our financial services subsidiary.
 "We are determined to take every appropriate and financially prudent step to strengthen the balance sheet by reducing debt and building equity. The dividend reduction provides capital and reduces the level of new equity required," Lego said.
 The PERCS, which convert to common stock within three years, provide a higher dividend but with a limit on price appreciation. The offering will be made only by means of a prospectus.
 Separately, Lego said, there will be no impact on shareholders' equity as a result of two accounting changes combined with the improved performance of the corporation's pension fund. The accounting changes include the adoption of the Statement of Financial Accounting Standards (SFAS) 106 and the pending amendment to SFAS 96.
 In 1992, Westinghouse will adopt the provisions of SFAS 106, Employers' Accounting for Post-retirement Benefits Other Than Pensions, and the soon-to-be-issued replacement for SFAS 96, Accounting for Income Taxes.
 Adoption of SFAS 106, concurrent with SFAS 96, will result in a one-time after-tax charge to first-quarter 1992 earnings of about $750 million for previous years' post-retirement benefits. The adoption of SFAS 96 will also result in an additional after-tax benefit to first- quarter earnings of about $450 million, reducing the charge to first- quarter earnings to about $300 million.
 During 1991, the improved performance of the Westinghouse pension fund assets and the advance contribution of Westinghouse common stock resulted in a $350 million restoration to shareholders' equity.
 These accounting changes combined with our pension fund performance will result in a zero impact to retained earnings.
 "With these issues resolved, we will now concentrate all of our attention on our agenda for 1992," Lego said.
 -0- 1/29/92
 /CONTACT: Jay McCaffrey of Westinghouse Electric, 412-642-3370/
 (WX) CO: Westinghouse Electric Corporation ST: Pennsylvania IN: SU:


CD -- PG006 -- 4717 01/29/92 11:55 EST
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Publication:PR Newswire
Date:Jan 29, 1992
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