Press Release
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Con Edison, Inc. Reports Second Quarter Earnings
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Company Reaffirms 2003 Earnings Projection
NEW YORK, Jul 17, 2003 /PRNewswire-FirstCall via COMTEX/ -- Consolidated Edison, Inc. (NYSE: ED) today reported net income for common stock for the second quarter of 2003 of $66 million or 29 cents a share, compared with earnings of $98 million or 46 cents a share, for the second quarter of 2002. The company also declared a quarterly dividend of 56 cents a share on its common stock payable September 15, 2003 to stockholders of record as of August 13, 2003. "Our energy delivery systems continue to perform very well," said Eugene R. McGrath, Chairman and Chief Executive Officer. "Our earnings were impacted by the unseasonably cool spring weather. We see continued growth in demand for our services, and on June 26, we set a new all-time electric peak load for that month." The company's net income for common stock for the first six months of 2003 was $220 million or $1.01 a share, compared with $244 million or $1.14 a share for the first six months of 2002. Net income for the 2002 period includes a one-time goodwill impairment charge of $20 million after-tax, related to certain unregulated generating assets. Excluding this non-cash charge, net income for the first six months of 2002 was $264 million or $1.24 a share. The company's earnings for the second quarter of 2003 were negatively affected by lower electric deliveries related to the exceptionally cool weather. For the first six months of 2003, this reduction partially offset the positive impact of increased energy sales in the first quarter, as compared with the corresponding 2002 period, related to colder than normal winter weather. In addition, earnings for both 2003 periods were impacted by a reduction in net credits for pension and other post-retirement benefits as compared with 2002. For the three months ended June 30, 2003, 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 0.3 percent, 0.5 percent and 1.3 percent, respectively, as compared to the 2002 period. For the first six months of 2003, 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 1.7 percent, 2.3 percent and 1.0 percent, respectively, as compared to the 2002 period. For the full year 2003, the company reaffirms its previous forecast of earnings in the range of $2.82 to $2.97 per share. The following table represents an analysis of the major factors affecting earnings per share for the second quarter of 2003 compared with 2002:
Earnings
2nd Quarter 2003 Compared With 2002 Per Share ($)
Con Edison of New York:
Impact of weather in 2003 on net revenues
versus 2002 (estimated) $(0.06)
Sales growth from factors other than weather
(estimated) 0.03
Reduced net credit for pensions & other
post-retirement benefits (0.08)
Higher depreciation and property tax expense (0.03)
Other (0.02)
Total Con Edison of New York (0.16)
Orange & Rockland Utilities (0.02)
Unregulated subsidiaries and parent company 0.01
Total $(0.17)
The following table represents an analysis of the major factors affecting earnings per share for year-to-date 2003 compared with 2002:
Earnings
Year-to-Date 2003 Compared With 2002 Per Share ($)
Con Edison of New York:
Impact of weather in 2003 on net revenues
versus 2002 (estimated) $0.07
Sales growth from factors other than weather
(estimated) 0.08
Reduced net credit for pensions & other
post-retirement benefits (0.15)
Regulatory accounting/amortizations (0.07)
Higher depreciation and property tax expense (0.06)
Amortization of divestiture gain in the
first quarter of 2002 (0.06)
Other (0.04)
Total Con Edison of New York (0.23)
Orange & Rockland Utilities --
Unregulated subsidiaries and parent company --
Cumulative effect of change in accounting principle
for goodwill impairment in 2002 0.10
Total $(0.13)
During the second quarter of 2003, the company issued 9,570,000 shares of common stock under a public offering, resulting in net proceeds of $378 million. The press release contains forward-looking statements of future expectations. Actual results might differ materially from those projected 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 $9 billion in annual revenues and approximately $19 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 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 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 and service provider.
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
(Millions of Dollars)
Operating revenues
Electric $1,561 $1,400
Gas 326 242
Steam 96 71
Non-utility 192 136
Total operating revenues 2,175 1,849
Operating expenses
Purchased power 906 702
Fuel 102 47
Gas purchased for resale 192 119
Other operations 279 231
Maintenance 91 99
Depreciation and amortization 130 121
Taxes, other than income tax 270 269
Income tax 41 61
Total operating expenses 2,011 1,649
Operating income 164 200
Other income (deductions)
Investment income 2 --
Allowance for equity funds used
during construction 4 2
Other income 6 8
Other Income deductions (5) (6)
Income tax 2 2
Total other income (deductions) 9 6
Income before interest charges 173 206
Interest on long-term debt 99 99
Other interest 8 8
Allowance for borrowed funds used
during construction (3) (2)
Net interest charges 104 105
Preferred stock dividend requirements 3 3
Net income for common stock 66 98
Earnings per common share - Basic $0.29 $0.46
Earnings per common share - Diluted $0.29 $0.46
Average number of shares outstanding
- Basic (in Millions) 219.3 212.8
Average number of shares outstanding
- Diluted (in Millions) 220.3 213.9
Consolidated Edison, Inc. utility sales
Electric (thousands of kilowatthours)
Total energy delivered in
service areas 13,320,730 13,717,590
Gas (dekatherms)
Firm sales and transportation 24,568,979 22,162,986
Off-system sales 339,201 2,666,228
Steam (thousands of pounds) 4,435,485 4,481,538
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
(Millions of Dollars)
Operating revenues
Electric $3,054 $2,701
Gas 946 716
Steam 334 212
Non-utility 412 276
Total operating revenues 4,746 3,905
Operating expenses
Purchased power 1,770 1,370
Fuel 287 112
Gas purchased for resale 556 350
Other operations 575 468
Maintenance 184 198
Depreciation and amortization 259 243
Taxes, other than income tax 554 536
Income tax 141 170
Total operating expenses 4,326 3,447
Operating income 420 458
Other income (deductions)
Investment income 2 1
Allowance for equity funds
used during construction 6 6
Other income 12 15
Other Income deductions (8) (15)
Income tax 3 16
Total other income (deductions) 15 23
Income before interest charges 435 481
Interest on long-term debt 198 193
Other interest 16 19
Allowance for borrowed funds used
during construction (5) (2)
Net interest charges 209 210
Preferred stock dividend requirements 6 7
Net income before cumulative effect
of a change in accounting principle 220 264
Cumulative effect of a change in
accounting principle (net of income
tax of $14 million) -- 20
Net income for common stock 220 244
Earnings per common share - Basic
Before cumulative effect of a
change in accounting principle $1.01 $1.24
Cumulative effect of a change in
accounting principle $ -- $0.10
After cumulative effect of a change
in accounting principle $1.01 $1.14
Earnings per common share - Diluted
Before cumulative effect of a
change in accounting principle $1.01 $1.24
Cumulative effect of a change in
accounting principle $ -- $0.10
After cumulative effect of a change
in accounting principle $1.01 $1.14
Average number of shares
outstanding - Basic (in Millions) 217.1 212.5
Average number of shares
outstanding - Diluted (in Millions) 218.0 213.7
Consolidated Edison, Inc. utility sales
Electric (thousands of kilowatthours)
Total energy delivered in
service areas 27,814,643 27,246,570
Gas (dekatherms)
Firm sales and transportation 83,951,874 68,416,623
Off-system sales 597,640 8,969,853
Steam (thousands of pounds) 15,107,574 12,417,347
SOURCE Consolidated Edison, Inc. Chris Olert, +1-212-460-4111, for Consolidated Edison, Inc. http://www.coned.com |
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