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Con Edison, Inc. Reports Third Quarter Earnings and Declares Dividend

NEW YORK, Oct. 16 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported net income for common stock for the third quarter of 2003 of $257 million or $1.17 a share compared with earnings of $284 million or $1.34 a share for the third quarter of 2002. The company also declared a quarterly dividend of 56 cents a share on its common stock payable December 15, 2003 to stockholders of record as of November 12, 2003.

"We're seeing the underlying strength of the New York City economy reflected in signs of recovery from the recent economic decline," said Eugene R. McGrath, Chairman and Chief Executive Officer. "For example, in the first half of 2003, housing permits issued in Con Edison of New York's service area were running at an 18-year high and were approximately 70 percent ahead of the level of five years ago."

The company's net income for common stock for the first nine months of 2003 was $478 million or $2.18 a share, compared with $528 million or $2.48 a share for the first nine months of 2002. Net income for the 2002 period included 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 nine months of 2002 was $548 million or $2.58 a share.

The company's earnings for the third quarter of 2003 were negatively affected by the multi-regional August power outage and the lower-than-normal number of hot days during the summer of 2003 compared with an exceptionally warm summer in 2002. The lower third quarter and nine month results also reflect the reduction in net credits for pensions and other post-retirement benefits and the current weak margins in the wholesale electric markets affecting sales from unregulated generation assets. For the first nine months of 2003, the negative impact on earnings from the weather in both the second and third quarters partially offset the positive impact of cooler-than-normal winter weather in the first quarter.

Electric delivery volumes by Con Edison of New York decreased for the three months ended September 30, 2003, after adjusting for variations in weather and billing days in each period and the August power outage, by 0.6 percent, while adjusted firm gas and steam delivery volumes increased 4.3 percent and 2.2 percent, respectively, when compared with the prior year.

For the first nine 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 and the August power outage, increased 0.8 percent, 2.6 percent and 1.2 percent, respectively, as compared with the 2002 period.

For the full year 2003, the Company expects its earnings to be near the lower end of its previously communicated forecast 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 third quarter of 2003 compared with 2002:

                                                                     Earnings
                                                                        Per
                                                                       Share
    3rd Quarter 2003 Compared With 2002                                 ($)

    Con Edison of New York:
      Impact of weather in 2003 on net revenues versus 2002
       (estimated)                                                    $(0.05)
      Sales, adjusted for weather (estimated)                           0.03
      Power outage (estimated)                                         (0.03)
      Regulatory accounting/amortizations                               0.06
      Reduced net credit for pension & other post-retirement benefits  (0.04)
      Higher depreciation and property tax expense                     (0.03)
      Other                                                             0.02
    Total Con Edison of New York                                       (0.04)
    Orange and Rockland Utilities                                      (0.02)
    Unregulated subsidiaries and parent company                        (0.08)
    Dilution effect of additional common equity shares issued
     in May and June                                                   (0.03)
                                                           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
                                                                        Per
                                                                       Share
    Year-to-Date 2003 Compared With 2002                                ($)

    Con Edison of New York:
      Impact of weather in 2003 on net revenues versus 2002
       (estimated)                                                     $0.02
      Sales, adjusted for weather (estimated)                           0.12
      Power outage (estimated)                                         (0.03)
      Regulatory accounting/amortizations                              (0.03)
      Reduced net credit for pensions & other post-retirement benefits (0.19)
      Higher depreciation and property tax expense                     (0.09)
      Amortization of divestiture gain in the first quarter of 2002    (0.06)
    Total Con Edison of New York                                       (0.26)
    Orange and Rockland Utilities                                      (0.02)
    Unregulated subsidiaries and parent company                        (0.08)
    Cumulative effect of changes in accounting principles               0.10
    Dilution effect of additional common equity shares issued
     in May and June                                                   (0.04)
                                                           Total      $(0.30)

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. (NYSE: ED) 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 SEPTEMBER 30, 2003 AND 2002
                                 (Unaudited)

                                                        2003           2002
                                                       (Millions of Dollars)

    Operating revenues
       Electric                                    $   2,237      $   2,126
       Gas                                               184            156
       Steam                                              95             76
       Non-utility                                       273            181
              Total operating revenues                 2,789          2,539

    Operating expenses
       Purchased power                                 1,220          1,064
       Fuel                                              131             83
       Gas purchased for resale                          101             75
       Other operations                                  292            224
       Maintenance                                        94             99
       Depreciation and amortization                     134            126
       Taxes, other than income tax                      295            301
       Income tax                                        169            181
              Total operating expenses                 2,436          2,153

    Operating income                                     353            386

    Other income (deductions)
       Investment income                                  14              1
       Allowance for equity funds used during
        construction                                       4              2
       Other income                                        2              2
       Other Income deductions                            (5)            (5)
       Income tax                                          -             10
              Total other income (deductions)             15             10

    Income before interest charges                       368            396

    Interest on long-term debt                           102            103
    Other interest                                         9              8
    Allowance for borrowed funds used during
     construction                                         (3)            (2)
              Net interest charges                       108            109
    Preferred stock dividend requirements                  3              3
    Net income for common stock                     $    257      $     284


    Earnings per common share - Basic               $   1.17      $    1.34


    Earnings per common share - Diluted             $   1.16      $    1.33


    Average number of shares outstanding
     - Basic (in Millions)                             225.0          213.2
    Average number of shares outstanding
     - Diluted (in Millions)                           226.0          214.2


    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
       Total energy delivered in service areas    17,296,651     17,845,544
    Gas (dekatherms)
       Firm sales and transportation              12,429,082     11,897,275
    Steam (thousands of pounds)                    5,547,996      5,801,011


                            CONSOLIDATED EDISON, INC.
                          CONSOLIDATED INCOME STATEMENT
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                                   (Unaudited)

                                                        2003           2002
                                                       (Millions of Dollars)

    Operating revenues
       Electric                                    $   5,291      $   4,827
       Gas                                             1,130            872
       Steam                                             430            289
       Non-utility                                       684            457
                 Total operating revenues              7,535          6,445

    Operating expenses
       Purchased power                                 2,990          2,434
       Fuel                                              417            195
       Gas purchased for resale                          657            425
       Other operations                                  867            692
       Maintenance                                       279            297
       Depreciation and amortization                     393            369
       Taxes, other than income tax                      849            837
       Income tax                                        310            352
                 Total operating expenses              6,762          5,601

    Operating income                                     773            844

    Other income (deductions)
       Investment income                                  16              1
       Allowance for equity funds used
       during construction                                10              8
       Other income                                       13             17
       Other Income deductions                           (13)           (19)
       Income tax                                          4             26
                 Total other income (deductions)          30             33

    Income before interest charges                       803            877

    Interest on long-term debt                           300            296
    Other interest                                        25             27
    Allowance for borrowed funds used during
     construction                                         (8)            (3)
                 Net interest charges                    317            320
    Preferred stock dividend requirements                  8              9
    Income before cumulative effect of a change
     in accounting principle                             478            548
    Cumulative effect of a change in accounting
     principle (net of income tax of $14 million)          -             20
    Net income for common stock                         $478           $528

    Earnings per common share - Basic
    Before cumulative effect of a change in
     accounting principle                          $    2.18      $    2.58
    Cumulative effect of a change in accounting
     principle                                     $       -      $    0.10
    After cumulative effect of a change in
     accounting principle                          $    2.18      $    2.48

    Earnings per common share - Diluted
    Before cumulative effect of a change
     in accounting principle                       $    2.17      $    2.57
    Cumulative effect of a change in
     accounting principle                          $       -      $    0.10
    After cumulative effect of a change
     in accounting principle                       $    2.17      $    2.47


    Average number of shares outstanding
     - Basic (in Millions)                             219.5          212.8
    Average number of shares outstanding
     - Diluted (in Millions)                           220.4          213.9


    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
       Total energy delivered in service areas    45,128,643     45,115,252
    Gas (dekatherms)
       Firm sales and transportation              96,363,795    107,067,531
    Steam (thousands of pounds)                   20,655,570     18,218,358

SOURCE Consolidated Edison, Inc. -0- 10/16/2003 /CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111/ /Web site: http://www.conEdison.com / (ED)

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