jim@central.uucp> (04/11/91)
On April 5, Rockwell International Corporation announced that its Network Transmission Systems Division is for sale. The full text of the press release follows: EL SEGUNDO, California (April 5, 1991) -- Rockwell international Corporation announced today that it intends to sell its Network Transmission Systems Division (NTSD), an industry leader in communication transmission equipment. "The Network Transmission Systems Division has achieved a well deserved reputation for innovative, high quality products that have earned it a leadership position in the telephone lightwave and microwave transmission products markets it serves," said Donald R. Beall, Rockwell Chairman and chief executive officer. Beall added "For many years NTSD has been a significant participant in both domestic and international telecommunications. The significant investments we have made in NTSD position this business well to sustain and grow its long-term value." "The sale of NTSD, which we expect to consummate by the end of this calendar year, will help us to achieve our goals for long-term growth in earnings per share and return on equity by allowing us to focus further resources on continued strengthening and growth in our businesses and other actions to enhance shareholder value," Beall noted. The Corporation has retained Dillon, Read & Co., of New York City as its advisor in selling the Network Transmission Systems Division. The Network Transmission Systems Division, with annual sales near $500 million, supplies leading edge products for telephone communication networks including fiber optic transmission systems, microwave transmission systems, digital multiplex products, and digital cross-connect systems. Its customers include both domestic and international long distance carriers, local exchange carriers, and cellular telephone companies. The Division has approximately 3,600 employees, primarily at its principal offices in Richardson, Texas. Other operating locations are in Longview and El Paso, Texas; San Jose, California; Nogales, Mexico; and Georgetown, Ontario. Beall also commented on current fiscal year earnings, stating, "We will be reporting our second quarter earnings about mid-month. As we anticipated earlier this year, we expect earnings will be somewhat below 1990's strong second quarter of 70 cents per share. Even with the uncertainties of the current economic environment, we continue to believe our 1991 earnings per share will be somewhat higher than in fiscal 1990." "Looking further ahead," Beall noted, "our preliminary assessment is that we may see 1992 earnings per share from our on-going operations being similar to the current fiscal year. Our longer term goals for improved earnings per share and return on equity remain unchanged." Rockwell International is a $12 billion, multi-industry company applying advanced technology to a wide range of products in its electronics, aerospace, automotive and graphics businesses. END OF PRESS RELEASE And that's all that I really know at this point, folks. Rumors have it that at least one European company has shown an interest in acquiring NTSD. I have no facts to back this up, though. Jim Blocker KF5IW rwsys.lonestar.org!kf5iw!jim