Newspaper article THE JOURNAL RECORD

ITT to Seek $90 Million in Savings

Newspaper article THE JOURNAL RECORD

ITT to Seek $90 Million in Savings

Article excerpt

ITT Corp. said Monday it is looking for ways to cut as much as $90 million before taxes from its 1994 operating costs and will seek to trim its workforce in the process.

According to company spokesman Jim Gallagher, the consulting firm McKinsey Co. began an efficiency study of ITT's corporate headquarters and its eight major business units on June 1. The study will run until Sept. 30.

The study will focus in part on support staff positions, which account for about 4,000 of the company's 106,000 employees, Gallagher said.

ITT will begin implementing some of the study's recommendations in September, he said. Motorola Reports Record Second Quarter

SCHAUMBURG, Ill. _ Motorola Inc. on Monday reported record second-quarter earnings on a 20 percent jump in sales.

The electronics maker said it had earnings of $224 million, or 83 cents per share, in the three months ended July 3. That compared with $143 million, or 54 cents per share, in the same period in 1992.

Company officials attributed the record performance to increased demand worldwide for Motorola's semiconductors, wireless communication devices such as pagers and cellular phones, and advanced electronic products.

For the first six months, earnings were $428 million, or $1.58 per share, compared with $268 million, or $1.01 per share, for the first half of 1992.

Second quarter 1993 sales were up 25 percent to $3.94 billion from $3.14 billion in the 1992 quarter. In the first half of 1993, sales reached $7.56 billion up from $6.2 billion. Regulators Investigate Penny Stocks

WASHINGTON _ Federal, state and industry regulators launched a team effort Monday to determine if brokers are complying with new rules aimed at aimed at protecting investors in low-cost, high-risk securities known as penny stocks.

The penny stock rules adopted last year by the Securities and Exchange Commission, require brokers to furnish potential buyers with documents outlining the potential risks of their investment.

Penny stocks are highly speculative securities, selling for under $5 as defined by the new rules, that are usually issued by new companies with an untested or uneven earnings history.

Penny stocks are vulnerable to fraud because it is difficult to obtain up-to-date information about the stocks. Most aren't listed on national stock exchanges or automated price quotation systems. GE Wants to Test Engines at Air Force Base

EVENDALE, Ohio (AP) _ General Electric Co. said Monday it signed a 20-year agreement with the Air Force that could allow the company to test commercial jet engines at an Air Force installation.

The agreement allows GE and the Air Force to explore research opportunities at Arnold Engineering Development Center near Tullahoma, Tenn., GE said. The discussions could result in a cooperative research and development deal. …

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