FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): July 21, 1994
Zenith Electronics Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-4115 36-1996520
(State or jurisdiction (Commission File (IRS Employer
of incorporation) Number) identification No.)
1000 Milwaukee Avenue
Glenview, Illinois 60025
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code (708) 391-7000
Not applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
------------
On July 21, 1994, Zenith Electronics Corporation issued a press
release, which is attached as Exhibit 20 hereto and is incorporated
by reference herein.
Item 7. Financial Statements, Pro forma Financial Information and Exhibits.
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(c) The following exhibits are included as part of this report:
Exhibit 20 - Zenith Electronics Corporation Press Release dated
July 21, 1994.
SIGNATURES
------------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ZENITH ELECTRONICS CORPORATION
By: /s/ David S. Levin
--------------------------
David S. Levin, Secretary
Date: July 21, 1994
<PAGE>
Exhibit Index
Exhibit
Number Exhibit Description
- ------- ---------------------------------------
20 Press Release dated July 21, 1994
Exhibit 20
FOR IMMEDIATE RELEASE
---------------------
ZENITH REPORTS SIGNIFICANTLY IMPROVED SECOND-QUARTER RESULTS
GLENVIEW, Ill., July 21, 1994 -- Zenith Electronics Corporation
today announced that it reduced its second-quarter net loss by
66 percent -- to $8.4 million, or 20 cents per share, in 1994
from a loss of $24.7 million, or 79 cents per share, in 1993.
Contributing to the $16 million improvement in quarterly
results were higher sales in Zenith's core business, lower
costs resulting largely from new re-engineering programs and a
substantial reduction in losses from non-core business areas that
have been sold or downsized.
Total revenues in the quarter were up 9 percent to
$299 million in 1994 from $275 million in 1993. Sales for the
core Consumer Electronics and Network Systems business increased
by $42 million, even after absorbing $12 million of lower consumer
electronics selling prices from a year ago. Non-core business
revenues declined by $18 million.
Driving the increase in Consumer Electronics sales were
higher Zenith color TV unit sales to dealers compared with
the year-earlier period, reflecting the strong acceptance of Zenith's
new color TV line and increased industry sales. Revenues for
Network Systems, particularly set-top boxes, also increased from
second-quarter 1993 levels.
(MORE)
<PAGE>
-2-
In non-core business areas, Zenith completed the sale
of its switch mode power supply magnetics business in the quarter.
Non-core business areas represented less than 2 percent of
second-quarter 1994 revenues, versus about 8 percent a year earlier.
The company completed the sale of its 1.7-million-
square-foot Springfield,Mo., plant in the second quarter bringing
the amount of plant and office spacethat Zenith has sold so
far in 1994 to 2.6 million square feet. Another 500,000-square-
foot building is under contract for sale. The completed transactions
did not have a material effect on earnings.
Short-term debt of $49 million at the end of the second
quarter of 1994 (compared with $46 million in the 1993 quarter)
financed increased receivables and planned higher inventory
levels to support seasonal demand in the second half.
For the first six months of 1994, Zenith reported a net
loss of $20.3 million, or 51 cents per share, compared with a net
loss of $46.5 million, or $1.51 per share, in the first half of
1993. First-half sales were $596 million in 1994 and $565 million
in 1993.
-30-
MEDIA CONTACT: John Taylor (708) 391-8181
INVESTOR CONTACT: Bill McNitt (708) 391-7713
<PAGE>
ZENITH ELECTRONICS CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(In millions, except per share amounts)
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
------------------ ------------------
July 2, July 3, July 2, July 3,
1994 1993 1994 1993
-------- -------- -------- --------
Net sales $ 299.0 $ 274.7 $596.1 $565.2
-------- -------- -------- --------
Costs, expenses and other:
Cost of products sold 270.1 265.7 546.4 544.2
Selling, general and administrative 26.0 23.2 49.8 45.7
Engineering and research 11.4 11.6 22.8 24.5
Other operating expense (income), net (3.6) (4.7) (9.5) (9.5)
Restructuring and other charges - - - -
-------- -------- -------- --------
Operating income (loss) (4.9) (21.1) (13.4) (39.7)
Interest expense (3.7) (3.7) (7.1) (6.9)
Interest income .2 .1 .2 .1
-------- -------- -------- --------
Income (loss) before income taxes (8.4) (24.7) (20.3) (46.5)
Income taxes (credit) - - - -
-------- -------- -------- --------
Net income (loss) $ (8.4) $ (24.7) $ (20.3) $(46.5)
======== ======== ======== ========
Net income (loss)
per share of common stock $ (.20) $ (.79) $ (.51) $(1.51)
======== ======== ======== ========
Average shares outstanding 41.6 31.3 39.6 30.9
