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