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Exhibit 99.1
[WESTINGHOUSE LOGO]
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WESTINGHOUSE PUBLIC RELATIONS WESTINGHOUSE ELECTRIC CORPORATION
WESTINGHOUSE BUILDING, GATEWAY CENTER
PITTSBURGH, PENNSYLVANIA 15222
Contact: Jack Bergen Contact: Kevin Ramundo
Telephone: (212) 975-3835 Telephone: (412) 642-4989
FOR USE: IMMEDIATE
WESTINGHOUSE REPORTS 1997 SECOND QUARTER RESULTS
PITTSBURGH, July 28, 1997 - Westinghouse Electric Corporation
(NYSE:WX) reported net income and income from continuing operations of $1
million, or $.00 per share, for the quarter ended June 30, 1997. These results
compare to last year's second quarter net loss of $89 million or $.20 per
share. The second quarter of 1996 included an after-tax charge of $114 million,
or $.26 per share.
For the first half of 1997, Westinghouse had a net loss of $150
million, or $.23 per share, compared with a net loss of $152 million or $.36
per share, excluding special items, in the year-ago period.
WESTINGHOUSE/CBS GROUP
In the second quarter, Westinghouse's media group reported earnings
before interest, taxes, depreciation and amortization (EBITDA) of $261 million
compared with $340 million in the year-ago quarter, on a proforma basis.
Infinity's contribution to EBITDA for the quarter was offset by decreased
revenue at the television network and a less favorable effect of purchase price
accounting for program rights. On a proforma basis, sales in the media group
were essentially flat.
The CBS Radio Group continued to outperform the radio industry,
growing at a double-digit rate. The Group's EBITDA of $157 million represents
an increase of nearly 23 percent compared with the year-ago quarter, on a
proforma basis.
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WESTINGHOUSE REPORTS 1997 SECOND QUARTER RESULTS -2-
Television station revenues declined 4 percent on a comparable station
basis, and EBITDA was essentially flat. Cost reduction programs instituted over
the past 18 months made significant contributions to EBITDA for the quarter.
During the quarter, the company combined the radio group and the
television stations into a consolidated CBS Station Group, and took several
initiatives to improve advertising sales in its local markets. Commenting on
the changes, Michael H. Jordan, Westinghouse chairman and chief executive
officer, said: "Momentum at our television stations has improved rapidly as a
result of our recent management actions and a strong May Book. We expect our
ongoing growth, particularly in the major markets, to benefit significantly
from greater interaction among our television, radio and outdoor businesses."
At the TV network, EBITDA decreased significantly, primarily due to
the previously mentioned effect of purchase price accounting and higher
programming costs. Although key demographics have declined slightly, the
network is continuing to grow audience share.
Summarizing the performance and prospects for the media businesses,
Mr. Jordan said: "We completed the 1996-1997 broadcast season with a strong
May sweeps performance, and we look forward to continual strengthening of our
ratings. The new season's strong price increases in the upfront market
demonstrate substantial improvement in advertisers' outlook for the CBS network
and are another positive sign for the TV stations. On the cable front, we
expect to complete our acquisition of The Nashville Network and Country Music
Television before the end of the third quarter. And finally, our radio and
outdoor advertising businesses continue to set the pace for the industry - and
the company - with exceptional top-line and bottom-line growth."
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WESTINGHOUSE REPORTS 1997 SECOND QUARTER RESULTS -3-
THERMO KING
Operating profit increased more than 6 percent for the quarter.
Profitability was enhanced by a surge in bus air conditioning sales, improved
conditions in the North American truck and trailer industry, lower material
costs and productivity improvements. Thermo King revenues were essentially
flat, primarily due to the strong U.S. dollar.
"Thermo King's performance is excellent. Not only have they continued
to outperform the market, but they also have delivered solid earnings growth
quarter-to-quarter over the last five-plus years," Mr. Jordan said.
INDUSTRIES AND TECHNOLOGY GROUP
Financial performance improved in every business in the Industries and
Technology Group compared with last year's second quarter. Total revenues
increased 14 percent compared to a year ago, primarily due to increased service
sales in Power Generation.
At Power Systems, which includes the Power Generation and Energy
Systems businesses, revenues increased nearly 15 percent, and operating profit
improved by $36 million. Despite relatively flat sales, operating profit at
Energy Systems increased $15 million. At Power Generation, service and new
equipment sales drove revenues up 26 percent and helped narrow the operating
loss to $2 million from $20 million in last year's second quarter.
Operating profit in the Government Operations unit increased more than
40 percent, largely due to the timing of fees from several government
contracts.
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WESTINGHOUSE REPORTS 1997 SECOND QUARTER RESULTS -4-
Commenting on the Industries and Technology Group's performance and
prospects, Mr. Jordan said: "The performance of our industrial businesses
continued to strengthen during the past quarter. As an independent company,
under the leadership of its new chief executive officer, Ernie Drew, this focus
on performance will intensify. We are confident that this new enterprise will
emerge after the spin-off with the financial strength and stability to continue
as a strong competitor in its markets."
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