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Con Edison, Inc. Reports 2007 Second Quarter Earnings
2nd Quarter 2007 Sales and Revenue Report
NEW YORK, NY, Aug 02, 2007 (MARKET WIRE via COMTEX News Network) -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2007 second quarter earnings of $154 million or $0.58 a share, compared with earnings of $124 million or $0.50 cents a share for the second quarter of 2006.
"Our financial performance in the second quarter reflects continued strength in our local economy, the impact of weather on our business, and overall, is consistent with our expectations for the year," said Kevin Burke, Chairman, President and Chief Executive Officer.
The company's net income for common stock for the first six months of 2007 was $410 million or $1.57 a share compared with $305 million or $1.24 a share for the first six months of 2006.
For the year 2007, the company confirms its previous forecast of earnings in the range of $3.05 to $3.25 per share, excluding the net mark-to-market effects of the competitive energy businesses, which are not presently determinable.
Con Edison's results of operations for the three and six months ended June 30, 2007, as compared with the 2006 period, reflect sales growth, colder winter and warmer spring weather, the utilities' rate plans (which are designed to recover increases in certain operations and maintenance expenses, depreciation and property taxes, and interest charges), the impact of storms and the results of the competitive energy businesses including net mark-to-market effects. The following table presents the estimated effect on earnings per share and net income for the second quarter and first six months of 2007 as compared to the 2006 periods, resulting from these and other major factors:
Second Quarter Variation Six Months Ended Variation Net Income Net Income Variation Variation Earnings (Millions Earnings (Millions per Share of per Share of Variation Dollars) Variation Dollars) ----------- ----------- ----------- ----------- Con Edison of New York Sales growth $ 0.03 $ 7 $ 0.06 $ 15 Impact of weather in 2007 versus 2006 0.07 16 0.11 27 Electric rate plan 0.10 23 0.16 40 Gas rate plan - 1 0.04 10 Net transfers to firm gas service 0.01 3 0.04 9 Steam rate plan 0.02 5 0.04 11 Operations and maintenance expense (0.09) (22) (0.10) (24) Depreciation and property taxes (0.08) (18) (0.14) (33) Interest charges (0.02) (5) (0.07) (17) Other (includes dilutive effect of new stock issuances) 0.02 13 - 19 ----------- ----------- ----------- ----------- Total Con Edison of New York 0.06 23 0.14 57 Orange and Rockland Utilities (O&R) - 3 0.04 10 Competitive energy businesses Earnings excluding net mark-to-market effects - - 0.01 3 Net mark-to-market effects (a) 0.03 7 0.11 28 Other, including parent company expenses (0.02) (5) 0.03 6 Discontinued operations 0.01 2 - 1 ----------- ----------- ----------- ----------- Total variation $ 0.08 $ 30 $ 0.33 $ 105 =========== =========== =========== =========== (a) These variations reflect an after-tax net mark-to-market gain of $2 million or $0.01 cent a share in the second quarter of 2007, an after-tax net mark-to-market loss of $5 million or $0.02 cents a share in the second quarter of 2006, and after-tax net mark-to-market losses of $7 million or $0.03 cents a share in the first six months of 2007 and $35 million or $0.14 cents a share in the first six months of 2006.
The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2007 three-month and six-month periods (265 million and 262 million shares, respectively) than in the 2006 three-month and six-month periods (246 million shares in each period).
For the three months ended June 30, 2007, 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 (and for gas, net transfers to firm service), increased by 2.1 percent, 6.0 percent and 1.1 percent compared with the 2006 period, respectively. For the three months ended June 30, 2007, amounts of electricity and gas delivered by O&R, after adjusting for variations in weather and billing days in the period, increased 1.8 percent and 0.9 percent compared with the 2006 period, respectively.
For the first six months of 2007, 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 (and for gas, net transfers to firm service), increased 2.4 percent, 2.6 percent and 0.7 percent compared with the 2006 period, respectively. For the first six months of 2007, amounts of electricity and gas delivered by O&R, after adjusting for variations in weather and billing days in the period, increased 1.3 percent for electricity and decreased 0.1 percent for gas compared with the 2006 period, respectively.
Refer to the company's Second Quarter Form 10-Q, which will be filed today with the Securities and Exchange Commission, for the consolidated balance sheets at June 30, 2007 and December 31, 2006 and the consolidated income statements for the three and six months ended June 30, 2007 and 2006. For additional information related to utility sales and revenues go to the Con Edison Web site at www.conedison.com, select "Investor Information" and then select "Financial Reports."
This press release contains forward-looking statements that 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 $12 billion in annual revenues and $27 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; Consolidated Edison Solutions, Inc., a retail energy supply and services company; Consolidated Edison Energy, Inc., a wholesale energy supply company; and Consolidated Edison Development, Inc., a company that owns and operates generating plants and participates in other infrastructure projects.
Contact: Joseph Petta 212-460-4111
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