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): February 15, 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)
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Item 5. Other Events.
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On February 15, 1994, Zenith Electronics Corporation issued
a press release announcing fourth quarter and full year
financial results for 1993, which is attached as Exhibit
20 hereto and is incorporated by reference herein.
Item 7. Financial Statements, Pro forma Financial Information
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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 February 15, 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: February 15, 1994
<PAGE>
Exhibit Index
Exhibit
Number Exhibit Description
- ------- ---------------------------------------
20 Press Release dated February 15, 1994
FOR IMMEDIATE RELEASE
- ---------------------
ZENITH REPORTS FOURTH-QUARTER LOSS, RESTRUCTURING CHARGES
GLENVIEW, Ill., Feb. 15, 1994 -- Zenith Electronics Corporation's
fourth-quarter 1993 pre-tax operating results were essentially unchanged
from the fourth quarter of 1992 -- an operating loss of $5 million
before restructuring charges.
Major cost-reduction efforts helped offset the effect of a $26 million
drop in sales in non-core business areas, $8 million of color TV price
reductions implemented a year ago, and a $3 million charge for increases
in certain inventories accounted for on a LIFO basis.
Special fourth-quarter 1993 charges were $31 million, primarily related
to restructuring and re-engineering actions announced in December. The
charges cover actions that, together with other initiatives, are expected
to reduce ongoing costs by about $50 million in 1994, compared with 1993.
The total fourth-quarter loss was $36.0 million, or $1.04 per share in
1993, compared with a net loss of $20.3 million, or 67 cents per share in
1992. (Fourth-quarter 1992 results included net charges of $15 million,
made up of a $25 million special charge, offset in part by a $10 million
tax credit.)
Fourth-quarter sales were $361 million in 1993 and $385 million in 1992.
Sales in the core product areas were up slightly in the fourth quarter.
Sales for non-core product areas declined by $26 million.
(MORE)
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-2-
Color television dollar sales were up substantially, despite the $8 million
of lower prices compared with the fourth quarter of 1992 (although pricing
remained relatively stable throughout 1993). The higher TV sales were
largely offset by lower sales of other core products, primarily picture
tubes sold to other manufacturers, due to a glass shortage which also
adversely impacted Zenith color TV sales.
For the full year, Zenith reported a net loss of $97.0 million, or $3.01
per share, compared with a 1992 loss of $105.9 million, or $3.59 per share.
Results for 1992 included restructuring charges of $48 million and tax
credits of $16 million.
Full-year sales were $1,228 million in 1993, compared with $1,243 million
in 1992.
Zenith Electronics Corporation, based in Glenview, Ill., has been a
leader in electronics for 75 years. Zenith's core business -- consumer
electronics, cable and networking products -- is at the center of the
company's digital strategy, which includes interactive television, digital
cable, video dial- tone, networking and high-definition television systems.
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MEDIA CONTACT: John Taylor (708) 391-8181
INVESTOR CONTACT: Bill McNitt (708) 391-7713
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ZENITH ELECTRONICS CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(In millions, except per share amount)
<TABLE>
<CAPTION>
(Unaudited)
Three Months Ended Twelve Months Ended
------------------ ----------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1993 1992 1993 1992
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $ 361.2 $ 385.0 $1,228.2 $1,243.5
-------- -------- ---------- ----------
Costs, expenses and other:
Cost of products sold 335.1 357.9 1,163.9 1,179.3
Selling, general and administrative 24.3 24.8 92.5 94.0
Engineering and research 11.2 14.3 47.8 55.4
Other operating expense (income), net (8.7) (9.9) (25.2) (24.3)
Restructuring and other charges 31.0 24.8 31.0 48.1
-------- -------- ---------- ----------
Operating income (loss) (31.7) (26.9) (81.8) (109.0)
Interest expense (4.4) (3.9) (15.5) (13.7)
Interest income - .5 .3 .9
-------- -------- ---------- ----------
Income (loss) before income taxes (36.1) (30.3) (97.0) (121.8)
Income taxes (credit) (.1) (10.0) - (15.9)
-------- -------- ---------- ----------
Net income (loss) $ (36.0) $ (20.3) $ (97.0) $(105.9)
======== ======== ========== ==========
Net income (loss)
per share of common stock $ (1.04) $ (.67) $ (3.01) $(3.59)
========= ========= ========= =========
Average shares outstanding 34.7 30.3 32.3 29.5
</TABLE>
