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Con Edison, Inc. Reports Second Quarter Earnings and Declares Dividend
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NEW YORK, Jul 18, 2002 /PRNewswire-FirstCall via COMTEX/ -- Consolidated
Edison, Inc. (NYSE: ED) today (THURSDAY, JULY 18, 2002) reported net income for
common stock for the second quarter of 2002 of $97.6 million or $.46 a share,
compared with earnings of $100.7 million or $.48 a share for the second quarter
of 2001. The company also declared a quarterly dividend of 55-1/2 cents a share
on its common stock payable September 15, 2002 to stockholders of record as of
August 14, 2002. Con Edison has raised its annual dividend level each year for
the past 28 years, most recently in January 2002.
"Our energy delivery systems are performing very well, the outlook for the regional economy is good, and we continue to make the investments in our system that will keep the system robust and ready to meet the growing energy needs of New York with the highest level of reliability," said Eugene R. McGrath, Chairman and Chief Executive Officer. "Thanks to the dedication and skill of our operating forces, we have completed the rebuilding of one of the substations we lost on September 11, as well as the related lower Manhattan energy distribution networks, and have begun rebuilding the remaining facilities." The company's net income for common stock for the first six months of 2002 was $264.2 million or $1.24 a share, compared with $279.8 million or $1.32 a share for the first six months of 2001. The company's earnings are generated substantially from its core regulated transmission and distribution business. The company's net income for common stock for the 12 months ended June 30, 2002 was $666.6 million or $3.14 a share, compared with $605.7 million or $2.86 a share for the 12 months ended June 30, 2001. Absent the effect of previously reported non-recurring charges in 2000 for nuclear replacement power and merger-related costs, earnings for the 12 months ended June 30, 2001 would have been $691.5 million or $3.26 a share. The company's earnings for the second quarter and first six months of 2002 reflect the impact of the unusually mild winter and spring weather and softness in the economy, partially offset by lower operating expenses. After adjusting for variations in weather and billing days in each period, electric, firm gas, and steam delivered by Con Edison of New York decreased by 0.1 percent, 0.1 percent, and 4.4 percent respectively, for the first six months of 2002 when compared to the prior year. The impact on earnings of the late June and early July heat waves will be reflected in third quarter earnings. The Financial Accounting Standards Board has changed the accounting for goodwill, and the company has modified its accounting to meet this new standard. Based on reviews conducted in accordance with SFAS No. 142, "Goodwill and Other Intangible Assets," the company expects to record in 2002 a non-cash impairment charge of approximately $20 million after tax in relation to certain generating assets owned by Con Edison Development. The company is currently forecasting its earnings range for 2002 to be $3.10 to $3.20 per share, excluding the goodwill adjustment. The primary cause of the modest reduction in earnings expectations from prior forecasts is the impact of the extremely mild weather during the first half of the year, particularly on steam sales. This 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 approximately $10 billion in annual revenues and $17 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 FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001 2002 2001 (Thousands of Dollars) Operating revenues Electric $1,400,045 $1,531,949 Gas 242,355 305,394 Steam 70,488 89,666 Non-utility 187,351 185,206 Total operating revenues 1,900,239 2,112,215 Operating expenses Purchased power 752,587 766,678 Fuel 46,749 57,230 Gas purchased for resale 119,220 197,979 Other operations 230,496 278,123 Maintenance 98,863 116,340 Depreciation and amortization 122,126 136,782 Taxes, other than income tax 269,253 256,661 Income tax 60,927 86,600 Total operating expenses 1,700,221 1,896,393 Operating income 200,018 215,822 Other income (deductions) Investment income 403 1,840 Allowance for equity funds used during construction 1,915 258 Other income less miscellaneous deductions 2,229 (9,191) Income tax 1,975 1,552 Total other income (deductions) 6,522 (5,541) Income before interest charges 206,540 210,281 Interest on long-term debt 98,994 98,355 Other interest 8,205 9,536 Allowance for borrowed funds used during construction (1,637) (1,684) Net interest charges 105,562 106,207 Net income 100,978 104,074 Preferred stock dividend requirements 3,398 3,398 Net income for common stock $97,580 $100,676 Common shares outstanding - average basic (000) 212,757 212,115 Common shares outstanding - average diluted (000) 213,931 212,555 Basic earnings per share $0.46 $0.48 Diluted earnings per share $0.46 $0.48 Dividends declared per share of common stock $0.550 $0.545 Consolidated Edison, Inc. utility sales Electric (thousands of kilowatthours) Total energy delivered in service areas 13,728,762 13,463,083 Off-system and ESCO sales - 16 Gas (dekatherms) Firm sales and transportation 22,182,909 23,011,021 Off-system sales 2,695,480 328,437 Steam (thousands of pounds) 4,481,538 4,707,156 CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001 2002 2001 (Thousands of Dollars) Operating revenues Electric $2,700,892 $ 3,239,323 Gas 716,219 1,007,213 Steam 211,954 347,918 Non-utility 370,313 404,024 Total operating revenues 3,999,378 4,998,478 Operating expenses Purchased power 1,466,083 1,775,284 Fuel 111,292 241,288 Gas purchased for resale 349,374 655,168 Other operations 467,095 539,531 Maintenance 198,571 244,786 Depreciation and amortization 242,569 271,866 Taxes, other than income tax 536,484 564,469 Income tax 170,471 203,772 Total operating expenses 3,541,939 4,496,164 Operating income 457,439 502,314 Other income (deductions) Investment income 1,105 4,623 Allowance for equity funds used during construction 6,121 501 Other income less miscellaneous deductions 501 (13,626) Income tax 16,067 7,138 Total other income (deductions) 23,794 (1,364) Income before interest charges 481,233 500,950 Interest on long-term debt 193,190 197,562 Other interest 18,768 20,023 Allowance for borrowed funds used during construction (1,707) (3,221) Net interest charges 210,251 214,364 Net income 270,982 286,586 Preferred stock dividend requirements 6,796 6,796 Net income for common stock $264,186 $279,790 Common shares outstanding - average basic (000) 212,546 212,078 Common shares outstanding - average diluted (000) 213,677 212,440 Basic earnings per share $1.24 $1.32 Diluted earnings per share $1.24 $1.32 Dividends declared per share of common stock $0.550 $0.545 Consolidated Edison, Inc. utility sales Electric (thousands of kilowatthours) Total energy delivered in service areas 27,270,029 27,472,944 Off-system and ESCO sales 18,332 392,924 Gas (dekatherms) Firm sales and transportation 68,389,809 79,010,519 Off-system sales 9,001,338 2,821,056 Steam (thousands of pounds) 12,417,347 15,189,852 CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT FOR THE TWELVE MONTHS ENDED JUNE 30, 2002 AND 2001 2002 2001 (Thousands of Dollars) Operating revenues Electric $6,349,433 $7,147,502 Gas 1,174,963 1,552,693 Steam 367,771 555,195 Non-utility 742,694 840,383 Total operating revenues 8,634,861 10,095,773 Operating expenses Purchased power 3,304,749 3,977,364 Fuel 263,834 410,469 Gas purchased for resale 572,212 1,009,812 Other operations 988,087 1,088,890 Maintenance 384,075 467,860 Depreciation and amortization 496,825 569,933 Taxes, other than income tax 1,111,245 1,120,417 Income tax 431,237 386,633 Total operating expenses 7,552,264 9,031,378 Operating income 1,082,597 1,064,395 Other income (deductions) Investment income 7,845 4,423 Allowance for equity funds used during construction 6,901 1,890 Other income less miscellaneous deductions (21,196) (40,289) Income tax 30,851 18,015 Total other income (deductions) 24,401 (15,961) Income before interest charges 1,106,998 1,048,434 Interest on long-term debt 392,577 390,586 Other interest 40,567 45,022 Allowance for borrowed funds used during construction (6,376) (6,511) Net interest charges 426,768 429,097 Net income 680,230 619,337 Preferred stock dividend requirements 13,593 13,593 Net income for common stock $666,637 $605,744 Common shares outstanding - average basic (000) 212,393 212,034 Common shares outstanding - average diluted (000) 213,461 212,307 Basic earnings per share $3.14 $2.86 Diluted earnings per share $3.13 $2.85 Dividends declared per share of common stock $0.550 $ 0.545 Consolidated Edison, Inc. utility sales Electric (thousands of kilowatthours) Total energy delivered in service areas 58,095,364 57,364,765 Off-system and ESCO sales 122,333 2,108,506 Gas (dekatherms) Firm sales and transportation 105,804,230 123,442,694 Off-system sales 14,913,634 11,829,682 Steam (thousands of pounds) 22,555,189 27,031,058SOURCE Consolidated Edison, Inc.
CONTACT: Michael Clendenin of Consolidated Edison, +1-212-460-4111 |
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