Press Release
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Con Edison, Inc. Reports 2005 Second Quarter Earnings
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Company Reaffirms 2005 Earnings Projection For Sales and Revenue Information, click hereTo print press release, click here NEW YORK, July 21 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported net income for common stock for the second quarter of 2005 of $115 million or 47 cents a share, compared with earnings of $86 million or 37 cents a share for the second quarter of 2004. The company also declared a quarterly dividend of 57 cents a share on its common stock payable September 15, 2005 to stockholders of record as of August 17, 2005. "Our solid performance in the second quarter benefited from the continued strengthening of the local economy," said Eugene R. McGrath, Chairman and Chief Executive Officer. The company's net income for common stock for the first six months of 2005 was $297 million or $1.22 a share compared with $241 million or $1.05 a share for the first six months of 2004. The following table represents an analysis of the major factors affecting Con Edison's earnings per share for the second quarter and first six months of 2005 compared with the 2004 periods:
Second Quarter Six Months
Variation Variation
Con Edison of New York:
Sales growth (estimated) $0.03 $0.07
Impact of weather in 2005 versus 2004
(estimated) (0.03) (0.04)
Electric rate plan (estimated) 0.24 0.24
Gas rate plan (estimated) 0.03 0.11
Steam rate plan (estimated) 0.04 0.13
Increased pension and other
postretirement benefit costs (0.04) (0.10)
Higher operation and maintenance expense (0.04) (0.08)
Higher depreciation and property tax expense (0.10) (0.14)
Other (0.01) (0.04)
Total Con Edison of New York 0.12 0.15
Orange and Rockland Utilities - -
Unregulated energy subsidiaries (including
parent company) (0.02) -
Total earnings per share variation from
continuing operations $0.10 $0.15
Discontinued operations - Con Edison Communications - 0.02
Total earnings per share variation $0.10 $0.17
The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2005 three-month and six-month periods (243 million shares in each period) than in the 2004 three-month and six-month periods (234 million and 231 million shares, respectively). For Con Edison of New York, increased revenues under the electric rate plan that took effect in April 2005 and the gas and steam rate plans that took effect in October 2004 address higher expenses for pensions and other postretirement benefits, ongoing operations and maintenance, and depreciation and property taxes, and provide a return on capital invested in the energy infrastructure. The increases in pension and other postretirement benefit costs reflect primarily lower net pension credits from the amortization of previous years' net investment gains and losses. Higher depreciation and property taxes reflect continuing infrastructure investment programs and the commercial start-up of the East River Repowering Project. For the year 2005, the company confirms its previous forecast of earnings in the range of $2.75 to $2.90 per share. For the three months ended June 30, 2005, amounts of electricity, gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.5 percent, 2.0 percent and 1.0 percent, respectively, as compared with the 2004 period. For the first six months of 2005, amounts of electricity, gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.9 percent, 3.2 percent and 2.5 percent, respectively, as compared with the 2004 period. Refer to the attachments to this press release for the condensed consolidated balance sheets at June 30, 2005 and December 31, 2004 and the consolidated income statements for the three and six months ended June 30, 2005 and 2004. Additional information related to utility sales and revenues is available on the Con Edison Web site at http://www.conedison.com, select "Investor Information" and then select "Financial Reports." This press release contains forward-looking statements which reflect expectations and not facts. Actual results may differ materially from those expectations because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission. Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with approximately $10 billion in annual revenues and $24 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas, and steam service in 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 and adjacent sections of northern New Jersey and northeastern Pennsylvania; Con Edison Solutions, a retail energy supply and services company; Con Edison Energy, a wholesale energy supply company; Con Edison Development, a company that owns and operates generating plants and participates in other infrastructure projects; and Con Edison Communications, a telecommunications infrastructure company and service provider.
CONSOLIDATED EDISON, INC.
CONSOLIDATED BALANCE SHEET (Condensed)
(UNAUDITED)
June 30, 2005 December 31, 2004
ASSETS (Millions of Dollars)
PLANT, AT ORIGINAL COST
Utility plant - net $15,511 $15,168
Non-utility plant - net 860 873
Non-utility property held for sale 70 65
NET PLANT 16,441 16,106
CURRENT ASSETS
Cash and temporary cash investments 818* 26
Accounts receivable - customers, less
allowance for uncollectible accounts 735 741
Other receivables, less allowance for
uncollectible accounts 179 198
Inventories 267 307
Prepayments 788 93
Current assets held for sale 9 5
Other current assets 660 339
TOTAL CURRENT ASSETS 3,456 1,709
INVESTMENTS 260 257
DEFERRED CHARGES, REGULATORY ASSETS
AND NONCURRENT ASSETS
Goodwill 406 406
Intangible assets - net 96 100
Prepaid pension costs 1,458 1,442
Regulatory assets 1,953 2,258
Other deferred charges and noncurrent assets 301 282
TOTAL DEFERRED CHARGES, REGULATORY ASSETS
AND NONCURRENT ASSETS 4,214 4,488
TOTAL ASSETS $24,371 $22,560
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common shareholders' equity $7,146 $7,054
Preferred stock of subsidiary 213 213
Long-term debt 7,190 6,561
TOTAL CAPITALIZATION 14,549 13,828
NONCURRENT LIABILITIES
Provision for injuries and damages 181 180
Pension and retiree benefits 267 207
Superfund and other environmental
costs 246 198
Noncurrent liabilities held for sale 6 5
Other noncurrent liabilities
including minority interest 138 134
TOTAL NONCURRENT LIABILITIES 838 724
CURRENT LIABILITIES
Long-term debt due within one year 471 469
Notes payable 176 156
Accounts payable 1,685* 920
Customer deposits 228 232
Current liabilities held for sale 9 11
Other current liabilities 630 434
TOTAL CURRENT LIABILITIES 3,199 2,222
DEFERRED CREDITS AND REGULATORY
LIABILITIES
Deferred income taxes and investment
tax credits 3,703 3,726
Regulatory liabilities and other
deferred credits 2,082 2,060
TOTAL DEFERRED CREDITS AND REGULATORY
LIABILITIES 5,785 5,786
TOTAL CAPITALIZATION AND LIABILITIES $24,371 $22,560
* Includes $734 million related to an outstanding prepayment of New York
City property taxes.
Consolidated Edison, Inc.
CONSOLIDATED INCOME STATEMENT
(Unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
(Millions of Dollars/Except Share Data)
OPERATING REVENUES
Electric $1,651 $1,531 $3,164 $3,070
Gas 354 283 1,082 928
Steam 96 93 363 328
Non-utility 305 257 598 517
TOTAL OPERATING REVENUES 2,406 2,164 5,207 4,843
OPERATING EXPENSES
Purchased power 969 890 1,908 1,820
Fuel 139 134 331 319
Gas purchased for resale 201 155 653 557
Other operations and
maintenance 405 359 819 737
Depreciation and amortization 146 137 287 273
Taxes, other than income taxes 281 255 551 537
Income taxes 39 46 149 153
TOTAL OPERATING EXPENSES 2,180 1,976 4,698 4,396
OPERATING INCOME 226 188 509 447
OTHER INCOME (DEDUCTIONS)
Investment and other income 11 4 16 16
Allowance for equity funds used
during construction - 6 8 12
Preferred stock dividend
requirements of subsidiary (3) (3) (6) (6)
Other deductions (4) (3) (10) (6)
Income taxes 2 5 6 6
TOTAL OTHER INCOME (DEDUCTIONS) 6 9 14 22
INTEREST EXPENSE
Interest on long-term debt 113 106 219 214
Other interest 1 6 10 16
Allowance for borrowed funds
used during construction - (4) (6) (8)
NET INTEREST EXPENSE 114 108 223 222
INCOME FROM CONTINUING OPERATIONS 118 89 300 247
LOSS FROM DISCONTINUED OPERATIONS
(NET OF INCOME TAXES OF $2, $2, $2
and $4) (3) (3) (3) (6)
NET INCOME $115 $86 $297 $241
EARNINGS PER COMMON SHARE - BASIC
Continuing operations $0.48 $0.38 $1.23 $1.07
Discontinued operations (0.01) (0.01) (0.01) (0.02)
Net income $0.47 $0.37 $1.22 $1.05
EARNINGS PER COMMON SHARE - DILUTED
Continuing operations $0.48 $0.38 $1.23 $1.06
Discontinued operations (0.01) (0.01) (0.01) (0.02)
Net income $0.47 $0.37 $1.22 $1.04
AVERAGE NUMBER OF SHARES
OUTSTANDING - BASIC
(IN MILLIONS) 243.4 234.0 243.1 230.6
AVERAGE NUMBER OF SHARES
OUTSTANDING - DILUTED
(IN MILLIONS) 244.2 234.9 243.8 231.6
SOURCE Consolidated Edison, Inc. -0- 07/21/2005 /CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460- 4111/ /Web site: http://www.coned.com / (ED) |
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