Westinghouse Posts 49% Drop in Profit
Westinghouse Electric Corp. said Thursday that its fourth-quarter profit tumbled 49% because of a decline in its power-generation business and interest costs from its acquisition of CBS Inc.
The lower-than-expected results included 37 days of earnings from CBS Inc., which Pittsburgh-based Westinghouse bought for $5.4 billion in November to make itself the biggest U.S. broadcasting company.
The company wrapped up an unprofitable year that was marked by disappointing earnings in each quarter, the firing of more than 2,600 employees and the sale of some industrial businesses as Chairman and Chief Executive Michael Jordan steered the struggling company in a new direction.
Westinghouse said its profit from continuing operations fell to $46 million, or 10 cents a share, from $91 million, or 20 cents, in the year-earlier quarter.
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Hasbro and Lewis Galoob Toys, two of the nation’s largest toy makers, reported higher earnings for the fourth quarter despite the weakest Christmas selling season since 1991.
Mount Laurel, N.J.-based Tyco Toys, citing the tough sales environment, reported a bigger loss for the quarter and a loss for the full year, partly because of one-time restructuring charges.
Pawtucket, R.I.-based Hasbro, the second-largest toy maker, said net income rose 12% to $85.2 million, or 97 cents a share, from $75.8 million, or 86 cents, in the same quarter of 1994.
The results exceeded expectations on Wall Street.
Lewis Galoob, based in South San Francisco, said net income rose 69% to $10.8 million, or 93 cents a share, from $6.4 million, or 55 cents. The results were in line with analysts’ estimates.
Tyco, which makes Sesame Street, Matchbox and View-Master toys, reported a net loss of $17.3 million, or 52 cents a share, compared with a loss of $12.7 million, or 39 cents, a year ago.
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New York-based Colgate-Palmolive reported that fourth-quarter earnings fell 11%, partly because of the peso devaluation and recession in Mexico.
Earnings for the quarter ended Dec. 31 were $122.5 million, or 80 cents a share, compared with $137.1 million, or 91 cents, a year earlier.
Colgate’s Latin American division accounts for 24% of sales, helped by a strong presence in Mexico.
The results slightly exceeded Wall Street estimates.
At a Glance:
New York Times reported an 18.7% earnings decline in the fourth quarter and a 36% drop for the year, largely reflecting the effect of higher newsprint costs and one-time gains a year earlier. The company earned $33.04 million, or 34 cents a share, in the October-December quarter, compared with $40.68 million, or 41 cents, in the year-earlier period. . . . Bally Entertainment posted a fourth-quarter profit from operations of $7 million, or 6 cents a share, contrasted with a year-ago loss of $100,000, or 2 cents.
