,,V ,, I . • t oI. , S(cid:127) k -A 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. N1ag9ea6t i8inn swcto a$ms3 ea.2 tp1 a e prr eeccro osmrhdma rhoei ngi hns 1hoa9f r6$e7 3i.. n4 9 Ogprruoorbw plethhmi,l son soooftp rgheroyor wgisat thno i czooer gmbapenceizlaleue sdfeo urs 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 eibnme n1pe9lf6oi7tys m tfoeo nr1 et3 ma6d,p5vl0oa0ny ceines d1c l9firm6o8mb.e Pd1a 3fyr2o ,am0n0d 0 toThfh aaen ps dcreoovdpeuel cootpf i mnn eeawn trt amadnaitdriko mentaasl n isunefcanlcustdeu.er s e $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- 2 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. 3 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 Stsihniagrgtonihsiuoffgyiuchisanoeng ut g th ortuophmwpeo atwhnrt.o u nrnlediet idiesss aaf onsrdo W uwrceaesn totsf TtCionho grmr opmauokogrearhe t qi twouhnaied,l iWetthyly eee sadCtviuonacmigalhatpiboaolunnesy be ays nLe daeep katprsraln yiinningg Ottvrhoatehli uneAinrn tttgpee erroorbfsgu ,rV raayIm SnJTsao Atbiino aCcnnlaoudlrd peePsv e oaCaplcueeeanr tatCietoiorno,r npo sfo f To serve unsatisfied needs of people, the latest advances in technology. tmhee nHt oeaf da Sletaadrte rpsrhoigpr atrmai,n tihneg dceovuerlsoep tbnsahi eedoeiwen nCv gboeo fuldm otsihpripeneeac ernCt seyasodn'esm dst o g pwswrauonhapwyirpcd'tslhh i e n caprear lewopa fan a abesnriq leaeuiartxieispte esan nads sNGdieveovewve et lrrosanypimnsetideen nmgbt ysp a rftnoeodbar l miesnomsdl vsuo isffnt argCcy eo tadmhr eepb yamb neyains g apsbttlaa atsrnhitcte- ut wrUpae.siSln da.i innNngdga v.ss kay lis ltAles mcparsdo efgomrray mn, estwo st auplcl ahn ta s manedn tu fsoer othf ee lgecetnreicr aptioowne, rd, iasntrdib aust iao n bsmpeeehncaitva.i lToisroat slh esinlcp im emnatneisepttos tw,h eeen r gndieneeevdeesrl soo pfa tnhde Wtioens tiisn pgrhoovuidsien gL enaerwni nagn dC oimrpporroaved pioneer in the broadcasting industry. economically depressed, an entire services to public and private school Twhaerd y eina rn 1e9w6 v8e wntausr ae sm aanjdo re sxtpepan fsoiron wploarnkt fino rac eh iigsh b euinnegm tpraloinyemd efnotr aar enae w stpiyousntteesr msr esas netdha rrtochhue g tahep cpthhlnieco aultosiego yno fto ocf opomrpoebra of traditional capabilities to enlarge of Pittsburgh. In related activities, lems of classroom scheduling, the Learning Corporation develops thdtthiaoeoeivrnn iemC,z lohooenompnsumt.p,s Taciennonhgymtes, ' ys mri eenpaau eltrn oh ebipecsr ltaoaeatru-tieseogae,nh srsht v ,oeis nfaie ggldetn nuhitc feciacraaren,t acponoflo dmBy peumdasani nnuieenassgd seemhsri rettihnrnae gip nNhrionaaggrtdir oa-pnmcraooslr g.e ArT aulhmlniraosen umcfgoeh r fassMaonucudpeilr paicstsoietueur rstfd e ooemprfn l teasth nnuertnce ihdcRn oegesrv,ysd eessclat.ooe rpAcmsmht sm ae Ccianscej toot nharut eennr rdet,i na g oticveitayn, ongurcalepahry p, oinwdeurs atrniadl dperofednusce. tthhee ssek ipllrso ganradm tsh,e t rpasinyecheso laorgei cgaivl eann d Wwheiscthin igsh tohues ne aLtieoanr'nsi nlega ddiinvgis iporno c 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 4 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 5