Printer Friendly

WESTINGHOUSE PUSHING TRANSFORMATION, CHAIRMAN REPORTS

 MINNEAPOLIS, April 28 /PRNewswire/ -- Westinghouse Electric Corporation (NYSE: WX) is pushing toward a financial, operational and organizational transformation that will change the company, shareholders were told here today.
 Chairman Richard M. Morrow and Gary M. Clark, president and acting chief executive officer, addressed shareholders at the Westinghouse annual meeting at the Hyatt Regency Hotel. In opening remarks, Mr. Morrow said:
 "For the past two years, Westinghouse struggled under the burden of difficult problems associated with the financial services business. Late last year we unveiled a comprehensive plan designed to address those problems and to fundamentally change this corporation.
 "Westinghouse was among the first companies in this country to recognize increasing shareholder concerns about the corporate governance process. As a result, several major by-law changes were made. They signaled Westinghouse's progressive stance and were a visible demonstration of the corporation's ability to make changes. While these changes were significant, they were not enough.
 "At the top of our priorities is the naming of a new chief executive officer. The board's search committee has been working diligently to identify the best candidates, both inside and outside the corporation. Certainly, one of the inside candidates is Gary Clark. The committee is determined to find a person who has the vision, the energy and the knowledge to see our plan through and to complete the transformation of Westinghouse.
 "The selection process is moving forward and we expect to name a permanent CEO within the next several weeks."
 Two directors, Robert W. Campbell, director and retired chairman of Canadian Pacific Ltd., and Hays T. Watkins, chairman emeritus of CSX Corporation, announced their retirement from the board.
 "Our Nominating and Governance Committee is conducting an active search for qualified individuals to join the Westinghouse board," Mr. Morrow said.
 In his remarks, Mr. Clark said the corporation's efforts are focused on fixing the problem caused by the Financial Services unit, driving quantum change throughout the corporation and building a portfolio of businesses that will ensure profitable growth.
 "In November we announced a comprehensive plan that will enable us to exit the Financial Services business," Mr. Clark said. "The plan required a further write-down of real estate values, the liquidation of the assets of Financial Services and the divestiture of four other businesses. These actions, painful as they are, will put the entire matter behind us.
 "I'm pleased to report we are ahead of schedule. In the past two quarters alone, we've sold assets for approximately $1.3 billion in cash. We've also recently entered into an agreement with an affiliate of Lehman Brothers to sell a large block of commercial real estate assets for approximately $1 billion cash. We've obtained favorable prices -- above the reserved value -- for these assets, and we believe that this trend will continue as we liquidate the remainder of the portfolio."
 Mr. Clark said that by mid-year Westinghouse expects to be substantially out of the commercial real estate business, the most troublesome part of the Financial Services portfolio. Net proceeds from the sale of these assets will be used to pay down debt.
 "The second part of our plan, the sale of four businesses, is also proceeding well. We've seen a high degree of interest from potential buyers for both the Westinghouse Electric Supply Company and our Distribution and Control business. Both are expected to be sold this year.
 "Our continuing businesses will maintain our core strengths in electronic systems, power systems, broadcasting, transport temperature control and environmental services," Mr. Clark said. "These are all excellent businesses. All are market leaders; all offer world-class quality; and all are profitable.
 "Westinghouse is working hard to drive quantum change in the way this company operates. We've established a transformation team to evaluate the corporation's support groups and their processes, to attack bureaucracy, eliminate duplication and cut nonessential functions. We expect major improvements in our overall cost structure. And by the end of the second quarter we will be using a new tool to measure productivity across the corporation. In addition, a new business planning process is being initiated which involves intensive strategic and financial reviews. All of these actions will help Westinghouse push for profitable growth in the future."
 In the business segment of the meeting, shareholders elected four directors for one-year terms of office -- Mr. Clark, Frank C. Carlucci, William H. Gray III and Dr. Paula Stern. Shareholders also re-elected Price Waterhouse as outside public accountants. Two shareholder proposals were defeated.
 /delval/
 -0- 4/28/93
 /CONTACT: Ronald Hart of Westinghouse Electric Corporation, 412-642-3373/
 (WX)


CO: Westinghouse Electric Corp. ST: Pennsylvania IN: ARO TLS SU:

KC -- PG007 -- 2066 04/28/93 13:04 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 28, 1993
Words:770
Previous Article:STANDARD & POOR'S STOCK PRICE INDEX -- NOON, WEDNESDAY, APRIL 28 /PRN/
Next Article:BROWNING-FERRIS INDUSTRIES WITHDRAWS TEMPORARY RESTRAINING ORDER REQUEST
Topics:


Related Articles
WESTINGHOUSE DISCONTINUES TALKS WITH GE CAPITAL
EATON CORPORATION TO ACQUIRE WESTINGHOUSE DISTRIBUTION & CONTROL BUSINESS FOR $1.1 BILLION
WESTINGHOUSE REORGANIZES SENIOR MANAGEMENT STRUCTURE
WESTINGHOUSE COMPLETES SALE OF WESCO TO CLAYTON, DUBILIER & RICE
ARIS MELISSARATOS NAMED VICE PRESIDENT OF SCIENCE, TECHNOLOGY AND QUALITY FOR WESTINGHOUSE
FAUST NAMED TO WESTINGHOUSE COMMUNITIES POST
WESTINGHOUSE HIRES TOP AGENCY CEO TO HEAD COMMUNICATIONS
WESTINGHOUSE PROPOSING TO SEPARATE BROADCASTING AND INDUSTRIAL BUSINESSES
REPUBLIC OF INDONESIA, WESTINGHOUSE TO FORM JOINT VENTURE
Morrison Knudsen, BNFL Announce Completion of Acquisition of Westinghouse Units From CBS.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters