YOU ARE HERE: LAT HomeCollections


Whittaker Corp. Gets Another Loan Extension

March 11, 1997|BARBARA MURPHY

Whittaker Corp. in Simi Valley has received two additional months to comply with a loan agreement.

Treasurer John Otto said the company hopes to renegotiate the agreement because it cannot meet the current terms any time soon.

"I anticipate we'll eventually have new" terms, Otto said, adding that the company hopes to complete negotiations by April 30. "I think we've got a pretty good relationship with the banks."

Whittaker, which makes components for communications networks and control systems for aerospace products, also announced it had a fiscal first-quarter loss of $18.1 million, or $1.63 a share, compared with net income of $1.89 million, or 20 cents, in the year-ago quarter.

The results for the quarter ended Jan. 31 reflect charges of $5.27 million, or 47 cents a share, for restructuring, and $4.73 million, or 43 cents, for relocation costs and inventory reductions.

Revenue rose 13% to $50.1 million from $44.4 million.

The increased revenue largely resulted from last year's acquisition of Xyplex Inc., which makes components for data communications systems.

Revenue from the company's communications division, which includes Xyplex, rose to $24.7 million from $15.3 million, while revenue from its aerospace division fell to $25.3 million from $29.1 million.

Whittaker officials said the Xyplex acquisition required the company to borrow an additional $70 million.

This is the fourth deadline extension Whitaker has obtained from its lender. Terms of its April 1996 credit arrangement require the company to meet certain earnings ratios based on previous quarters' financial performance.

Whittaker wants new loan terms "that don't look backwards," Otto said.

Los Angeles Times Articles