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Con Edison, Inc. Reports Third Quarter Earnings and Declares Dividend
NEW YORK, Oct 17, 2002 /PRNewswire-FirstCall via COMTEX/ -- Consolidated Edison, Inc. (NYSE: ED) today (THURSDAY, OCTOBER 17, 2002) reported net income of $283.7 million for the third quarter of 2002 or $1.34 a share, compared with earnings of $277.3 million or $1.31 a share for the third quarter of 2001. The company's net income for the first nine months of 2002 before cumulative effect of a change in accounting principle was $547.9 million or $2.58 a share, compared with earnings of $557.1 million or $2.63 a share for the nine months ended September 30, 2001. In its Statement No. 142 "Goodwill and Other Intangible Assets," the Financial Accounting Standards Board changed the accounting for goodwill. The company has modified its accounting to meet this new standard and as a result has recorded a one-time non-cash impairment charge of $20.2 million after tax. Including this charge, net income for the nine months ended September 30, 2002 was $527.7 million or $2.48 a share. The one-time impairment charge, as required under SFAS No. 142, is retroactive to January 1, 2002 and is attributable to generating assets owned by Con Edison Development.

The company also declared a quarterly dividend of 55 1/2 cents a share on its common stock payable December 15, 2002 to stockholders of record as of November 13, 2002.

"Con Edison is on target for another solid year in 2002. Our utility systems are performing very well and we continue to maintain effective cost controls as we focus on the basics of our business," said Eugene R. McGrath, Chairman and Chief Executive Officer. "In a challenging economic environment, our financial condition remains strong with a solid balance sheet, good liquidity and above average debt ratings," McGrath added.

For the full year 2002, the company is reaffirming its earnings range of $3.10 to $3.20 a share, excluding the goodwill impairment charge.

The company's earnings for the third quarter reflect the impact of the summer heat wave offset in part by the soft economy. For the first nine months of 2002 the company's earnings also reflect the impact of the mild winter weather particularly on steam sales, partially offset by reduced operations and maintenance expenses. The company's earnings are generated substantially from its core regulated transmission and distribution business.

"For June, July and August of 2002, the company set a new three-month electric delivery record of more than 17 million megawatt hours," said Kevin Burke, President of Con Edison of New York. "We saw five of our ten highest peak load days this summer. We are continuing our investment in our energy infrastructure to be ready to meet our customers' growing energy needs," he said. After adjusting for variations in weather and billing days in each period, electricity delivered by Con Edison of New York increased by 0.3 percent, while firm gas and steam delivered by Con Edison of New York decreased by 0.4 percent and 4.6 percent respectively, for the first nine months of 2002 when compared to the prior year.

The company's net income before cumulative effect of change in accounting principle for the 12 months ended September 30, 2002 was $673.0 million or $3.17 a share. Net income for common stock, after the one-time non-cash impairment charge, for the 12 months ended September 30, 2002 amounted to $652.8 million or $3.07 a share. Earnings for the 12 months ended September 30, 2001 were $603.2 million or $2.84 a share. Absent the effect of previously reported non-recurring charges of $67.6 million after tax in 2000, earnings for the 12 months ended September 30, 2001 would have been $670.8 million or $3.16 a share.

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 over $8 billion in annual revenues and $18 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 SEPTEMBER 30, 2002 AND 2001

                                                         2002            2001
                                                       (Thousands of Dollars)

    Operating revenues
         Electric                                  $2,127,517      $2,247,336
         Gas                                          155,550         166,601
         Steam                                         76,662          78,703
         Non-utility*                                 150,275         134,916
          Total operating revenues                  2,510,004       2,627,556

    Operating expenses
         Purchased power*                           1,061,852       1,072,042
         Fuel                                          83,867          99,845
         Gas purchased for resale                      70,857          86,868
         Other operations                             200,048         258,599
         Maintenance                                   98,757         101,128
         Depreciation and amortization                126,162         133,011
         Taxes, other than income tax                 301,163         313,583
         Income tax                                   181,203         176,069
          Total operating expenses                  2,123,909       2,241,145

    Operating income                                  386,095         386,411

    Other income (deductions)
         Investment income                                572           2,985
         Allowance for equity funds used
          during construction                           1,983             286
         Other income less miscellaneous deductions    (2,583)         (6,549)
         Income tax                                     9,702           5,490
          Total other income (deductions)               9,674           2,212

    Income before interest charges                    395,769         388,623

    Interest on long-term debt                        102,619         100,587
    Other interest                                      8,305           9,230
    Allowance for borrowed funds used
     during construction                               (1,697)         (1,934)
          Net interest charges                        109,227         107,883
    Preferred stock dividend requirements               2,831           3,398
    Net Income before cumulative effect
     of change in accounting principle                283,711         277,342
    Cumulative effect of change in
     accounting principle                                  --              --
    Net income for common stock                      $283,711        $277,342

    Earnings per common share - Basic
    Before cumulative effect of change in
     accounting principle                               $1.34           $1.31
    Cumulative effect of change in
     accounting principle                                  --              --
    After cumulative effect of change in
     accounting principle                               $1.34           $1.31

    Earnings per common share - Diluted
    Before cumulative effect of change in
     accounting principle                               $1.33           $1.30
    Cumulative effect of change in
     accounting principle                                  --              --
    After cumulative effect of change in
     accounting principle                               $1.33           $1.30

    Average number of shares outstanding -
     Basic (000)                                      213,219         212,206
    Average number of shares outstanding -
     Diluted (000)                                    214,220         212,807

    * Non-utility revenues and purchased power expenses were reduced by
      $153.7 million in 2002 and $65.4 million in 2001 in accordance with
      Financial Accounting Standard Board's Emerging Issues Task Force (EITF)
      Issue No. 02-03, "Accounting for Contracts Involved In Energy Trading
      and Risk Management Activities". This change has no impact on net
      income.

    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
         Total energy delivered in service areas   17,814,059      16,963,547
         Off-system and ESCO sales                         14             164
    Gas (dekatherms)
         Firm sales and transportation             11,927,086      12,268,962
         Off-system sales                           1,824,729       2,060,386
    Steam (thousands of pounds)                     5,801,011       5,846,306


                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
            FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

                                                         2002            2001
                                                      (Thousands of Dollars)

    Operating revenues
         Electric                                  $4,827,348      $5,486,659
         Gas                                          871,770       1,173,813
         Steam                                        288,616         426,621
         Non-utility*                                 417,032         414,584
          Total operating revenues                  6,404,766       7,501,677

    Operating expenses
         Purchased power*                           2,430,772       2,739,562
         Fuel                                         195,159         341,133
         Gas purchased for resale                     415,944         723,990
         Other operations                             663,566         799,583
         Maintenance                                  297,327         345,914
         Depreciation and amortization                368,731         404,877
         Taxes, other than income tax                 837,648         878,052
         Income tax                                   351,674         379,841
          Total operating expenses                  5,560,821       6,612,952

    Operating income                                  843,945         888,725

    Other income (deductions)
         Investment income                              1,548           7,608
         Allowance for equity funds used
          during construction                           8,103             787
         Other income less miscellaneous deductions    (2,185)        (20,176)
         Income tax                                    25,771          12,629
          Total other income (deductions)              33,237             848

    Income before interest charges                    877,182         889,573

    Interest on long-term debt                        295,810         298,149
    Other interest                                     27,252          29,254
    Allowance for borrowed funds used
     during construction                               (3,404)         (5,156)
          Net interest charges                        319,658         322,247
    Preferred stock dividend requirements               9,627          10,194
    Net Income before cumulative effect
     of change in accounting principle                547,897         557,132
    Cumulative effect of change in
     accounting principle (net of
     income taxes of $13.9 million)                    20,182              --
    Net income for common stock                      $527,715        $557,132

    Earnings per common share - Basic
    Before cumulative effect of change in
     accounting principle                               $2.58           $2.63
    Cumulative effect of change in
     accounting principle                                0.10              --
    After cumulative effect of change in
     accounting principle                               $2.48           $2.63

    Earnings per common share - Diluted
    Before cumulative effect of change in
     accounting principle                               $2.57           $2.62
    Cumulative effect of change in
     accounting principle                                0.10              --
    After cumulative effect of change in
     accounting principle                               $2.47           $2.62

    Average number of shares outstanding -
     Basic (000)                                      212,766         212,119
    Average number of shares outstanding -
     Diluted (000)                                    213,850         212,519

    * Non-utility revenues and purchased power expenses were reduced by
      $257.7 million in 2002 and $189.8 million in 2001 in accordance with
      Financial Accounting Standard Board's Emerging Issues Task Force (EITF)
      Issue No. 02-03, "Accounting for Contracts Involved In Energy Trading
      and Risk Management Activities". This change has no impact on net
      income.

    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
         Total energy delivered in service areas   45,060,683      44,436,490
         Off-system and ESCO sales                     18,346         393,088
    Gas (dekatherms)
         Firm sales and transportation             80,321,453      90,959,293
         Off-system sales                          10,826,067       4,881,442
    Steam (thousands of pounds)                    18,218,358      21,036,158



                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
           FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

                                                          2002           2001
                                                      (Thousands of Dollars)

    Operating revenues
         Electric                                   $6,228,553     $7,066,607
         Gas                                         1,163,913      1,541,403
         Steam                                         365,730        551,061
         Non-utility*                                  533,691        808,792
          Total operating revenues                   8,291,887      9,967,863

    Operating expenses
         Purchased power*                            3,076,505      3,898,932
         Fuel                                          247,857        402,699
         Gas purchased for resale                      551,914        974,248
         Other operations                              926,058      1,083,912
         Maintenance                                   381,705        454,017
         Depreciation and amortization                 489,976        552,272
         Taxes, other than income tax                1,098,700      1,105,056
         Income tax                                    436,395        430,960
          Total operating expenses                   7,209,110      8,902,096

    Operating income                                 1,082,777      1,065,767

    Other income (deductions)
         Investment income                               5,177          5,983
         Allowance for equity funds used
          during construction                            8,598          1,634
         Other income less miscellaneous deductions    (17,291)       (53,533)
         Income tax                                     35,063         25,665
          Total other income (deductions)               31,547        (20,251)

    Income before interest charges                   1,114,324      1,045,516

    Interest on long-term debt                         394,609        395,774
    Other interest                                      39,822         40,232
    Allowance for borrowed funds used
     during construction                                (6,139)        (7,297)
          Net interest charges                         428,292        428,709
    Preferred stock dividend requirements               13,025         13,592
    Net Income before cumulative effect of
     change in accounting principle                    673,007        603,215
    Cumulative effect of change in
     accounting principle (net of
     income taxes of $13.9 million)                     20,182             --
    Net income for common stock                       $652,825       $603,215

    Earnings per common share - Basic
    Before cumulative effect of change in
     accounting principle                                $3.17          $2.84
    Cumulative effect of change in
     accounting principle                                 0.10             --
    After cumulative effect of change in
     accounting principle                                $3.07          $2.84

    Earnings per common share - Diluted
    Before cumulative effect of change in
     accounting principle                                $3.16          $2.84
    Cumulative effect of change in
     accounting principle                                 0.10             --
    After cumulative effect of change in
     accounting principle                                $3.06          $2.84

    * Non-utility revenues and purchased power expenses were reduced by
      $313.2 million in 2002 and $223.4 million in 2001 in accordance with
      Financial Accounting Standard Board's Emerging Issues Task Force (EITF)
      Issue No. 02-03, "Accounting for Contracts Involved In Energy Trading
      and Risk Management Activities".  This change has no impact on net
      income.

    Average number of shares outstanding -
     Basic (000)                                       212,640        212,091
    Average number of shares outstanding -
     Diluted (000)                                     213,694        212,450

    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
         Total energy delivered in service areas    58,901,309     58,322,603
         Off-system and ESCO sales                     122,183        890,949
    Gas (dekatherms)
         Firm sales and transportation             105,465,570    122,476,263
         Off-system sales                           14,677,976      8,105,305
    Steam (thousands of pounds)                     22,509,894     27,376,605

SOURCE Consolidated Edison, Inc.

CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111 URL: http://www.coned.com

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