[clari.tw.electronics] E-Systems reports record 1989 results, boosts dividend 50 percent

clarinews@clarinet.com (02/02/90)

	DALLAS (UPI) -- E-Systems, a major defense electronics contractor,
Thursday reported fourth-quarter earnings of $23.2 million, or 73 cents
a share, up from $20.4 million, or 65 cents a share, in the same period
of last year.
	The company's earnings for the whole year rose to $83 million, or
$2.65 a share, from $74.5 million, or $2.40 a share, in 1988.
	Separately, the company's directors approved a 50 percent increase
in the first quarter dividend to 18.75 cents a common share (75 cents on
an annualized basis) from a quarterly rate of 12.5 cents paid
previously. The dividend is payable April 4 to holders of record on
March 16.
	Revenues in the latest quarter totaled $433.8 million and for the
year $1.63 billion. In 1988, those totaled $388 million in the fourth
quarter and $1.44 billion for the whole year.
	The company had orders of $1.88 billion in 1989. The backlog at the
end of 1989 rose to $2.5 billion from $2.24 billion at the end of 1988.
	The fourth-quarter and year-end earnings included a $7 million
after-tax gain from the proceeds of an insurance policy. The company
also set up pre-tax reserves of $6 million against operations and $3
million for legal fees and other costs associated with the termination
of some contracts in Florida.
	``I am pleased with our overall results for the year, particularly
our 12 percent increase in backlog in a period of declining defense
budgets,'' said Chairman E. Gene Keiffer.
	He said the company, which produces reconnaissance, intelligence
and communications systems, is uniquely positioned for future growth and
``our decision to raise our dividend at this time is confirmation of our
ability to achieve this growth.''