1968 Annual Report from Westinghouse Electric Corp.

37 Pages·2005·2.56 MB·English

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1968 Annual Report Westinghouse

Westinghouse Electric Corporation
3 Gateway Center
Box 2278, Pittsburgh, Pa. 15230
1968 Annual Report

1968 Annual Report Westinghouse Electric Corporation
Contents Financial Highlights 1968 1967
Chairman's Letter 2 Sales ........................ $3,296,147,000 $2,900,698,000
Serving the Needs of People 4 Net income ................... 135,013,000 122,490,000
Financial Statements 18 Net income per common share .... 3A9 3.21
Financial Review 21 Dividends paid per common share.. 1.80 1.60
Accountants' Report 23 Average common shares outstand-
ing during year ................ 38,296,000 37,731,000
Ten Year Highlights 24
Dividends paid ................ $ 70,347,000 $ 61,894,000
Directors and Officers 26
Working capital at year-end ...... 765,127,000 865,260,000
Expenditures for new and improved
facilities ...................... 206,435,000 145,413,000
Depreciation .................. 64,467,000 56,179,000
Sales in Net Income Per Capital Expenditures in
Billions of Dollars Common Share in Dollars Millions of Dollars
$5.0 $5.00 $250
4.0 4.00 200
Cover - This black and white abstraction 3.0 3.00 150/
is actually a photograph of a Westinghouse
ebminpel ogyeen e(rcaetnotre ar)t twheo rEkiansgt Pointt sab luarrgghe, tPuar., 2.0 2.00 100 - ý
plant. The unusual effect is achieved by
recopying the continuous tone photograph 1.0] 1.00 50
on high contrast film; repeated recopying
eliminates all intermediate grey tones, $ 0 $ 0 $ 01
leaving only black and white areas. 1964 65 66 67 68 1964 65 66 67 68 1964 65 66 67 68
To Our Stockholders:
cessive records in each year since
Tohnee yfoera Wr 1e9s6ti8n wghaosu asne oauntds tfaonrd itisn g 1964. We made great strides in
owners, employes and the markets panrodv riedliinagb lce upsrtoodmuecrtss ,w siythst eimmpsr oanvded
it serves.
services.
sIta wleas,s ian cyreeaars oefd redcivoirdde enadrsn, innegws and Our studies and expectations for the
gmroanwatghe manedn tth set rfuocrmtuareti oton doifr eac nt ew fa$un2t uotorreg ,$a 3hn oibzwiallteiivoonen r o,d fc eobsnuigvsniinneecdse sdt o w umasa st nhnaaogtt e
future growth.
necessarily the right one to handle
the long-range growth we foresee.
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Sales crossed the $3 billion level to do it.
for the first time to $3,296,000,000
a gain of 13.6 per cent from Westinghouse opportunities are
$2,900,000,000 in 1967. Dividends taking on new dimensions as a
paid per common share rose to result of a rapidly rising population,
$1.80 from $1.60 in the previous year. technological advances, social
Employes who contributed so ccohmanmgeit manedn ta tov atshte n iamtipornoavl eamnedn wt oorfl d
ereffsesc ctiovnetliyn utoe dth teo C boemnepfaitn fyro'sm p rtohge hpueompalne linif eth. iSsa ltaisttfeyri npga rnt eoefd tsh eo f
overall improvement. Average Twentieth Century involves more
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$1,216,000,000 in 1967 to services of a most advanced and
$1,327,000,000 in 1968. sophisticated degree, embracing vir
tually all phases of human existence.
For the future, the most significant
development of 1968 was the Westinghouse, perhaps uniquely,
planning which led to the establish possesses immense resources for
ment of a new management organ capitalizing on new opportunities
ization on January 2,1969. Our technical skills, experience, imagi
objective was to develop the most nation and initiative. With a great
effective organization to manage the range of capabilities and with new
accelerated growth we see in the markets of unlimited potential, we
future. The new management struc felt it was essential to have a man
ture looks beyond the $4 billion of agement structure which would give
sales we expect by 1970. fullest rein to profitable expansion.
We are now organized for what is
In 1963 we realigned management ahead.
for the specific purpose of improving
earnings and moving Westinghouse Instead of two Executive Vice Presi
off a sales plateau which had existed dents, each of whom previously
for five years from 1958 through managed half of the manufacturing
1962 when our sales were holding operations, we now have four officers
just under $2 billion. The objectives designated as Presidents reporting
of that management organization to the Chairman.
generally were achieved. We got off
the sales plateau, breaking new The four Presidents and their oper
ground in 1968 by going well past ating units are Robert E. Kirby,
the $3 billion mark. Earnings im Industry and Defense Products;
proved steadily from the $1.28 per John W. Simpson, Power Systems;
share earned in 1963, setting suc-
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Charles E. Hammond, Consumer While earnings have set new records
Products, and Donald H. McGannon, for four straight years, we are far
Broadcasting, Learning and Leisure from being satisfied with profit per
Time. formance. We are continuing an
aggressive cost improvement program
Mr. Kirby formerly was Executive to overcome higher costs and
Vice President; Mr. Simpson was improve earnings.
Group Vice President, Electric Utility;
Mr. Hammond was Group Vice Given a sustained high level in the
President, Industrial; Mr. McGannon general economy, I expect that 1969
then as now served as President and will be another good year for West
Chairman of the Westinghouse inghouse. The people-oriented
Broadcasting Company and as markets we are serving, as you will
Chairman of the Westinghouse find in the following pages, are
Learning Corporation. displaying vigorous growth patterns
which should be reflected in con
Three Vice Chairmen were appointed tinued progress.
to manage staff functions. George L.
Wilcox, formerly Executive Vice
President, is Vice Chairman - Corpo
rate Affairs. Marshall K. Evans,
formerly Vice President, Operations
Services, is Vice Chairman - Plan D. C. Burnham, Chairman
ning. George G. Main, formerly Vice
President, Finance, who will retire in
1969, is Vice Chairman and Con
January 29,1969
sultant.
The four Presidents and three Vice
Chairmen, along with the Chairman,
comprise a new Management Policy
Committee which will review and
establish Corporate policies and
plans.
Ten Executive Vice Presidents were
appointed to take charge of re
grouped divisions under the oper
ating Presidents. We broke down our
former group structure into a larger
number of smaller and more manage
able units which are streamlined,
flexible and more responsive to
customer needs.
Starting on Page 27 you will find
photographs and further identifica
tion of the new top officers and the
various divisions and responsibilities
under their supervision.
I am confident that these men and
their organizations will provide for
meeting the needs of people through
the wide range of Westinghouse
products and services, a scope that is
hard to match in industry today.
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This first-grader at a Hicksville, N.Y., school
is able to learn at his own pace, thanks to
a computer-managed instructional support
system being developed by Westinghouse
Learning Corporation and now in test use
in 14 school districts in five states.
Serving the Needs of People Increasing Productivity cath eWstaesrh, iNn.gHto.,n E, aDst. SCt. . Louis, Ill., and
Through Education
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pioneer in the broadcasting industry. economically depressed, an entire services to public and private school
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of traditional capabilities to enlarge of Pittsburgh. In related activities, lems of classroom scheduling,
the Learning Corporation develops
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attitudinal preparation needed to essor of educational test results.
Following are the year's highlights hold a job and build a career. For the
Labor Department's Concentrated
on products and services which The application of the growing
Employment Program, Remedial
reflect the new dimensions of West fund of knowledge available to
inghouse in helping to meet the Education and Job Development behavior psychologists is a key to
needs of people everywhere. Centers are being operated at Man
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Group W (Westinghouse Broadcasting to political conventions, the MacLeish- Students at a Dorchester, Mass., school
Company) correspondent Bernard Shaw Shaw team broadcast special radio re- pledge allegiance to the flag in a scene
(left) and commentator Rod MacLeish ports, "America: A Month in the Country." for "One Nation, Indivisible," a Group W
(right) chat with Managing Editor Whitney television special on America's racial crisis.
Austin of the Salina, Kan., Journal. Prior
improving the learning process. At This broadcast philosophy was Group W's seven radio stations, were
the Learning Corporation's Behavior apparent in the three-and-one-half based on talks with Americans in
Systems Division in Albuquerque, hour colorspecial, "One Nation, small towns and urban centers from
N.M., work in the development of Indivisible," an examination of the California to the Eastern seaboard.
psychological and behavioral sys cause and effect of prejudice among
tems is being carried out under the both black and white Americans SPECTRUM 52 is a colorful variety
direction of recognized leaders in and its relationship to the racial crisis of 52 Group W weekly entertainment
the field. in our cities. The program, produced and news specials for prime time view
by Group W, was telecast at midyear ing during the 1968-69 season. The
Project PLAN (Program for Learning on its five television stations and on programs include comedy, variety
in Accordance with Needs), intro 61 other stations in major cities of and dramatic specials featuring
duced in 1967, provides a computer the United States. It suggested Group W personalities Mike Douglas
managed individual course of study specific things each viewer could do and Merv Griffin as well as David
for each student at a pace consistent to help ease racial tension in his city. Frost, Noel Coward, Sir Laurence
with his abilities. PLAN has been Olivier, Alec Guinness, Vanessa Red
introduced in 14 school districts in Later in the year, the Group W radio grave, Johnny Mathis, Cyril Ritchard
New York, Massachusetts, Pennsyl station WBZ in Boston brought and Broadway star Joel Grey, among
vania, West Virginia and California, together nine of the most articulate other American and European celeb
and will be operative in grades one political and educational leaders in rities. Cultural offerings include a
through 1 2 by September 1970. the city's school decentralization special on the architecture and ideas
controversy and, for 22 hours, taped of Frank Lloyd Wright, the music and
the ensuing discussion. The resulting attitudes of Negro musicians, Stan
Closing the Communications Gap program, edited to 11 nonstop hours, Getz with the Philadelphia Chamber
formed, according to Newsweek Symphony and "Emlyn Williams as
Communications represents one of magazine, "a remarkable study in Dylan Thomas."
the most exciting areas of challenge what communications is all about."
Another Westinghouse Broadcasting
and opportunity in today's society.
Through innovative programming, The mood and thoughts of the activity is GroupW Films, which co
Group W, Westinghouse Broadcast American people in the weeks leading produces feature films in the United
ing Company, seeks not only to to the political conventions were States, Europe and Australia for
inform and entertain, but to engender reported by Group W newsmen in theaters and television. Stars of some
a firmer sense of community involve the series, "America: A Month in the recently completed films include
ment among its listeners and viewers. Country." The reports, broadcast over Dustin Hoffman, Van Heflin, Tab
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