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Con Edison Announces Favorable 1999 Earnings; Increases Dividend For 26th Consecutive Year
NEW YORK, Jan. 20 /PRNewswire/ -- Consolidated Edison, Inc. (NYSE: ED) today reported favorable earnings growth of 3.3 percent for 1999, increased its dividend by 4 cents on an annualized basis and expanded its common stock repurchase program by up to $300 million. ``These actions reflect the company's continued commitment to provide enhanced shareholder value for both the short- and long-term,'' said Chairman and Chief Executive Officer Eugene R. McGrath.
The company declared a dividend of 54-1/2 cents a share on its common stock payable March 15, 2000 to stockholders of record as of February 16, 2000, an increase of one cent over the previous quarterly dividend of 53-1/2 cents.
``This continues our record of increasing dividends each year for more than a quarter of a century, a further indication of shareholder commitment,'' stated Mr. McGrath.
The company also announced that its Board of Directors had approved the expansion of the stock repurchase program by allowing for the repurchase of up to an additional $300 million of stock. Repurchases will be made from time to time on the open market, as determined by market conditions and other financial needs of the company. Through the end of 1999, Con Edison had repurchased 21 million shares, amounting to $940 million of its previously announced $1 billion common stock repurchase program.
``Our major effort on behalf of shareholders for the year 2000,'' Mr. McGrath continued, ``will be to bring about the successful closure of the proposed merger with Northeast Utilities (NU) and achieving the expected synergies rapidly.'' In that regard, by the end of this week, the company and NU will have filed the details of the proposed merger and requests for support or approval with regulatory agencies in all of the states in which they operate, as well as with the FERC, SEC and NRC. The closing of the merger is projected to take place prior to year-end.
The 3.3 percent increase in earnings per share resulted from the impact of the strong local economy on the company's electric sales and revenues, continued emphasis on cost control and cost reduction, and the effects of the common stock repurchase program. ``The higher earnings were a reflection of the company's ability to mitigate the effects of divestiture and the continued rate reductions that were implemented in accordance with the company's electric restructuring agreement, as well as the cost impacts of the summer heat wave and Hurricane Floyd,'' said Executive Vice President and Chief Financial Officer Joan S. Freilich.
``The cash proceeds from the sale of our power plants were promptly deployed in our acquisition of Orange & Rockland Utilities (O&R) and the stock repurchase program,'' she noted, ``thus restoring the earnings that would otherwise have been lost through the divestiture of these assets. The integration of O&R into the Con Edison family has proceeded rapidly and smoothly and O&R is contributing, as expected, to our solid financial results.''
The company's net income for common stock for 1999 was $700.6 million or $3.14 a share, compared with $712.7 million or $3.04 a share for 1998.
The company's net income for common stock for the fourth quarter of 1999 was $121.6 million or $.58 a share, compared with $131.8 million or $.56 a share for the fourth quarter of 1998.
Net income for common stock for the 1999 periods reflects Con Edison's purchase of O&R in July 1999, while the periods prior to July 1999 do not include O&R's financial results.
Consolidated Edison Company of New York's electric sales volume in 1999 was 3.9 percent higher than in 1998. Firm gas sales and transportation volume increased 5.8 percent and steam sales volume also increased 6.1 percent, reflecting the very mild 1998 winter weather.
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with more than $7 billion in annual revenues and approximately $15 billion in assets. The company provides a wide range of energy-related products and services to its customers through its six subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas and steam service to New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,350 square mile area in southeastern New York State, as well as adjacent sections of northern New Jersey and northeastern Pennsylvania; Con Edison Solutions, a retail energy services company; Con Edison Energy, a wholesale energy supply company; Con Edison Development, an infrastructure development company; and Con Edison Communications, a telecommunications infrastructure company.
For additional financial, operations and customer service information, visit the Consolidated Edison, Inc. web site at http://www.conedison.com.
CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 (Thousands of Dollars) Operating revenues Electric $1,430,977 $1,277,947 Gas 274,613 223,949 Steam 79,607 66,185 Non-utility 103,911 49,256 Total operating revenues 1,889,108 1,617,337 Operating expenses Purchased power 607,386 248,984 Fuel 80,682 117,396 Gas purchased for resale 145,438 99,737 Other operations 301,223 319,475 Maintenance 105,169 111,470 Depreciation and amortization 125,352 130,785 Taxes, other than federal income tax 276,611 289,405 Federal income tax 59,191 87,775 Total operating expenses 1,701,052 1,405,027 Operating income 188,056 212,310 Other income (deductions) Investment income 5,342 3,856 Allowance for equity funds used during construction 1,042 697 Other income less miscellaneous deductions (13,196) (4,466) Federal income tax 32,098 1,455 Total other income 25,286 1,542 Income before interest charges 213,342 213,852 Interest on long-term debt 83,232 75,807 Other interest 5,695 3,173 Allowance for borrowed funds used during construction (546) (357) Net interest charges 88,381 78,623 Preferred stock dividend requirements 3,398 3,398 Net income for common stock $121,563 $131,831 Common shares outstanding - average (000) 216,312 233,098 Basic earnings per share $0.58 $0.56 Diluted earnings per share $0.57 $0.56 Consolidated Edison Company of New York, Inc. Sales Electric (thousands of kilowatthours) Total sales in service territory 12,073,423 11,778,046 Off-system and ESCO sales 1,955,238 1,534,641 Gas (dekatherms) Firm sales and transportation 21,129,401 20,204,423 Off-system sales 6,794,771 8,368,549 Steam (thousands of pounds) 5,433,749 5,134,057 CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT TWELVE MONTHS ENDED DECEMBER 31, 1999 AND 1998 1999 1998 (Thousands of Dollars) Operating revenues Electric $5,792,673 $5,674,446 Gas 1,000,083 959,609 Steam 340,026 321,932 Non-utility 358,541 137,061 Total operating revenues 7,491,323 7,093,048 Operating expenses Purchased power 1,824,023 1,253,783 Fuel 430,050 579,006 Gas purchased for resale 485,155 437,308 Other operations 1,188,623 1,157,958 Maintenance 437,979 477,413 Depreciation and amortization 526,182 518,514 Taxes, other than federal income tax 1,179,796 1,208,102 Federal income tax 399,716 407,639 Total operating expenses 6,471,524 6,039,723 Operating income 1,019,799 1,053,325 Other income (deductions) Investment income 14,842 11,760 Allowance for equity funds used during construction 3,810 2,431 Other income less miscellaneous deductions (13,571) (14,212) Federal income tax 26,891 2,229 Total other income 31,972 2,208 Income before interest charges 1,051,771 1,055,533 Interest on long-term debt 319,393 308,671 Other interest 20,065 18,359 Allowance for borrowed funds used during construction (1,895) (1,246) Net interest charges 337,563 325,784 Preferred stock dividend requirements 13,593 17,007 Net income for common stock $700,615 $712,742 Common shares outstanding - average (000) 223,442 234,308 Basic earnings per share $3.14 $3.04 Diluted earnings per share $3.13 $3.04 Consolidated Edison Company of New York, Inc. Sales Electric (thousands of kilowatthours) Total sales in service territory 50,525,792 48,645,587 Off-system and ESCO sales 9,105,786 3,955,096 Gas (dekatherms) Firm sales and transportation 89,359,313 84,426,238 Off-system sales 32,942,436 25,982,200 Steam (thousands of pounds) 26,532,797 24,995,694 SOURCE: Consolidated Edison, Inc.
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