Westinghouse Electric Corp said
earnings per share growth will exceed sales growth and will be
in the double digit range through 1989.
In 1986, the company earned 4.42 dlrs a share on revenues
of 10.7 billion dlrs.
Speaking at a meeting for securities analysts, Douglas
Danforth, Westinghouse's chairman, said the company's sales
growth target is about 8.5 pct a year for 1988 and 1989, "given
an economic environment that remains on a moderate growth
course." He also said the company will make acquisitions, but
he did not specify particular targets.
Paul E. Lego, senior executive vice president told the
analysts "our plans do not call for a multibillion dlr
acquisition, even though our balance sheet can handle one.
Despite this disclaimer, if we identify a major acquisition
that has significnt value-creating for Westinghouse...we will
consider it." He said the company would consider an acquisition
candidate that is in an area compatable with Westinghouse's
primiary businesses.
Danforth said the corportation was focused in several key
areas including defense electronics, financial services,
broadcasting, electrical products and services for construction
and industrial and utility markets.
Danforth added that he expects Westinghouse's sales to grow
faster than the markets the corportation serves and "surely
faster than GNP."
He said earnings per share growth is expected to
consistently exceed the Standard and Poor's 500 index and
return on equity will remain in the 18 to 21 pct range.
Leo W. Yochum, senior executive vice president for finance,
told the analysts "we will consider buying back stock" but
there are no current plans for such a buyback.
Yochum said that at the company's current level of earnings
it could comfortably maintain higher debt levels and that
Westinghouse will use its debt capacity to improve shareholder
value.
Last year, Westinghouse established a 790 mln dlrs
restructuring reserve to be used for plant consolodation,
assett writedowns and other items. Yochum said, the company
spent 306 mln dlrs of that reserve in 1986 and will spend 344
mln dlrs of the reserves in 1987. The balance will be used in
1988. He also said, capital expenditures should be about 400
mln dlrs in 1987.
Reuter