AEG Sets Job Cuts And Sale Of Unit

In addition to the sale of AEG's appliances unit for an undisclosed sum, Mr. St枚ckl said buyers were also being sought for its European lighting, cables and meters businesses. Electrolux already owned 10 percent of the AEG appliances unit.

AEG will also spin off its low-voltage components and propulsion-related automation activities to two joint ventures controlled by General Electric Co. of the United States, Mr. St枚ckl said.

At the same time AEG will take control of all Daimler-Benz industrial activities not related to motor vehicle and aerospace technology, primarily microelectronics and diesel motors for power generation.

AEG's key industrial automation and rail transportation divisions will be retained but reorganized, with the latter division shedding a production plant in Berlin for a savings of 180 million Deutsche marks a year, Mr. St枚ckl said.

Mr. St枚ckl predicted the company would return to profit in 1995. Last year it had an operating loss of 200 million DM. The company's annual revenue is expected to total 9.3 billion DM after the reorganization, down from 11.6 billion DM in 1992. This year's operating loss is expected to be considerably higher than the 1992 level.