2 N. Riverside Plaza, Chicago, 60606, 312-902-1515
– Founded: 1967
– Fiscal year-end: Dec. 31
– Chief executive
Samuel Zell, 50, since 1985
1991 cash compensation: $1.1 million.
Shares owned: 13.6 million of 31.2 million common shares (through a partnership)
– Employees: 5,300; 1,210 in Illinois
– Foreign sales: 22 percent of $1.69 billion total in 1991
– May 1, 1992, value of $1,000 in company stock:
Purchased May 1, 1991: $1,205
Purchased May 1, 1987: $843
– In the 1980s, capital was easy to obtain, and Sam Zell`s Itel grew through acquisitions financed by high-cost debt. Itel entered the 1990s concerned about the availability of capital and with its flexibility limited by the high fixed costs of several of its businesses.
– Its response was to divest operating units and many of its investments in other firms, in some cases, at a loss. Divestiture proceeds have been used to reduce debt and to buy back a big chunk of Itel stock from Henley Group Inc.
– Itel`s latest deal involves leasing nearly all its rail-car fleet to General Electric Capital Corp. Itel will be left with one major operating unit, the Anixter wire and cable business, and investments in energy and real estate firms. Of late, Zell has been doing more of his maneuvering through other entities he controls.
– Anixter has suffered from sluggish construction activity in the cable-television industry and start-up costs for operations in Europe. Its results should improve as cable systems more readily obtain construction financing and as its foreign operations take root.
