wsj_0973.xml

WSJ891026-0085 WSJ891026-0085 = 891026
= 891026
891026-0085 . 891026-0085 . Westinghouse @ Sees Big Gains @ For Next Year @ --- @ Boost in Operating Margins , @ Double-Digit Per-Share @ Growth Forecast by Firm @ ---- @ By Gregory Stricharchuk @ Staff Reporter of The Wall Street Journal Westinghouse @ Sees Big Gains @ For Next Year @ --- @ Boost in Operating Margins , @ Double-Digit Per-Share @ Growth Forecast by Firm @ ---- @ By Gregory Stricharchuk @ Staff Reporter of The Wall Street Journal 10/26/89 10/26/89
10/26/89
WALL STREET JOURNAL ( J ) WALL STREET JOURNAL ( J ) WX WX ELECTRICAL COMPONENTS AND EQUIPMENT ( ELQ ) ELECTRICAL COMPONENTS AND EQUIPMENT ( ELQ ) NEW YORK NEW YORK Westinghouse Electric Corp. , capitalizing on a major restructuring program , expects operating margins of more than 10 % and double-digit per-share earnings growth next year , top officers told securities analysts here . John C. Marous , chairman and chief executive officer , also said the company expects sales from continuing businesses to rise 8.5 % annually through the next three years . In 1988 , the company earned $ 822.8 million , or $ 5.66 a share , on sales of $ 12.49 billion . Since 1983 , Westinghouse has shed 70 businesses that it did n't expect to produce 10 % operating margins while acquiring 55 businesses . In the past 20 months alone , Paul E. Lego , president and chief operating officer , said the divestiture of $ 300 million of slow-growth , low-profit businesses has been more than offset by $ 600 million in profitable acquisitions . Westinghouse expects to meet its corporate goals despite a softening in the economy . Even if the gross national product is either flat or in the growth range of 2 % to 2.5 % , `` we can handle that , '' Mr. Marous said . GNP is the total value of the nation 's output of goods and services . A bright spot is the company 's power-generation business , which is experiencing a surge of growth for the first time in years . Mr. Marous said the business will achieve higher sales this year than the company 's target goal of 8.5 % . While Westinghouse has n't had a nuclear power plant order from a U.S. utility in about a decade , excess capacity is beginning to shrink . Mr. Lego said the company foresees the need for a major boost in new-generation capability throughout the 1990s . Westinghouse also is well positioned to sell steam turbine and gas turbine plants to independent power producers . The company 's ability to respond to energy needs world-wide will be enhanced through a recently announced venture with Mitsubishi Heavy Industries , Mr. Lego said . He said the independent power segment could grow to provide as much as 50 % of near-term generation capacity , adding : `` We expect to supply a significant share of this market . '' Westinghouse also expects its international sales to soon grow to 25 % of total corporate sales from 20 % last year . The company is negotiating with the Soviets to build a Thermo King truck-refrigeration plant that would produce about 10,000 units annually . Mr. Marous said Westinghouse would own 70 % of the facility . The deal , which will involve an initial $ 20 million investment , was struck with a handshake , he added . Company officials also said that any gain from the sale of Westinghouse 's 55 % stake in its transmission and distribution venture with the Swiss firm of Asea Brown Boveri will be offset by a restructuring charge in the fourth quarter . The executives did n't disclose the size of the expected gain . Capital expenditure in 1990 will rise slightly , Mr. Marous said , from an estimated $ 470 million this year .