Westinghouse Electric Corp. yesterday reported a net loss of $52 million in the third quarter, a span during which operating profits fell 66 percent.
Also yesterday, the company's local division, Electronic Systems, began notifying 510 workers at its Linthicum and Hunt Valley facilities that they will lose their jobs by the end of the year. The layoffs were previously announced, but individual workers were not notified at the time.
Jack Martin, a spokesman for the local division, said that the majority of the 510 layoffs will be at the company's Linthicum complex.
He said 30 workers will be laid off at its Hunt Valley center. Another 190 positions that have been vacant since June will not be filled, he said.
The division will eliminate 23 jobs at other plants in California, Texas and Alabama. Mr. Martin said there will be more layoffs early next year as the restructuring continues.
Mr. Martin also warned that more workers will be laid off next year as the company seeks to eliminate about 1,100 defense jobs.
Westinghouse's third-quarter results take into account the sale of several units and charges to cover the layoff of workers and the settlement of a long-standing legal dispute with the Philippines.
It set aside $52 million to cover the layoffs at Electronic Systems.
"There were no big surprises" in the financial results, said Jonas Stiklorius, an analyst who follows Westinghouse for NatWest Securities Corp. in New York.
"The number, on an apple to apple basis, was slightly lower than we expected. The charges seemed slightly larger than we expected and the gains slightly smaller. We were expecting 17 cents a share on earnings from operations and, excluding charges, they came in at 14 cents."
Overall, Westinghouse took a pretax write-off of $120 million to cover the elimination of 1,875 jobs throughout the company.
It took another charge of $45 million to settle a legal dispute with the Philippines government over a nuclear power plant it completed in 1985.
During the quarter, the company completed several sales which generated $750 million.
They included the sale of the company's 49 percent interest in Micros Systems Inc., a Beltsville maker of point-of-sale computer systems, for about $130 million.
Westinghouse is in the process of acquiring CBS for $5.4 billion.
It has said it will sell another $1.5 billion to $2 billion in assets to help pay for the television network. "If they are looking for a quick sale," Mr. Stiklorius said, "they would likely sell Thermo King or Electronic Systems."
He said there are five or six companies interested in the defense arm of Westinghouse "and it could go out the door pretty fast."
Profits from continuing operations dropped to $24 million, or 4 cents a share, from $70 million, or 14 cents a share, in the same period last year.
The company posted a net loss of $52 million, or 15 cents a share, compared with a profit of $73 million, or 15 cents a share, a year ago.
Revenues declined nearly 3 percent, to $2.13 billion from $2.19 billion.
Despite the poor results, Michael H. Jordan, Westinghouse's chairman and chief executive, said in a statement:
"We have made tangible progress in fixing the issues that are detracting from Westinghouse's financial performance by reducing costs, resolving legacies and achieving market share and earnings growth in many of our core businesses.
"As a result, we expect 1995 earnings per share to be up by approximately 10 percent over 1994 for income from continuing operations, excluding special items and the CBS acquisition."
Electronic Systems added to the company's third-quarter problems. Sales declined slightly to $656.4 million from $661.4 million.
It posted an operating loss of $14.1, compared with an operating profit of $39.2 million in the same period in 1994.
For the first nine months of the year, the local division realized a 20 percent gain in sales.
Although earnings from operations were down 41.6 percent to $58.6 million, the company said they would have been up 10 percent without the restructuring
Westinghouse Electric Corp.
.. ... ... ... ... Ticker .. Yesterday's .. ... ... ... .... ..Symbol .. Cls. ..Chg. ... ..... ..... ..... WX .. .. .13 5/8 .. - 1/4
May 31 .. .. 2nd qtr. .. .. ..Year ago .. ... ..Chg.
Revenue .. ..$2,130,000 .. .. $2,193,000 .. .. -2.8%
Net Income ..($52,000) .. .. .$73,000 *. ... ... .--
Primary EPS .($0.15) .. ... ..$0.15 *. ... ... .. --
.. ... ... ..6 mos. .. ... ...Year ago .. ... ..Chg.
Revenue .. ..$6,342,0005 .. ..$5,914,000 .. ...+7.2%
Net Income . $22,000 .. ... ..$184,000 * .. ..-88.0%
Primary EPS .$0.03 .. .. ... .$0.38 * .. .. .. .0.0%
Figures in thousands (except per share data).
* Includes gain on sale of industrial cleaning supply business of $1.9 million, or 2 cents per share.