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Con Edison Reports Solid Results for 2001; Increases Dividend for 28th Consecutive Year
NEW YORK, Jan. 17 /PRNewswire/ -- Consolidated Edison, Inc. (NYSE: ED) today (THURSDAY, JANUARY 17, 2002) reported year 2001 net income for common stock of $682.2 million or $3.22 a share, compared with earnings of $582.8 million or $2.75 a share for 2000. Earnings for 2000 included non-recurring charges of approximately $162 million, or $0.49 a share, for nuclear replacement power and merger-related costs. Excluding these charges, year 2000 earnings would have been $3.24 a share.
The company also declared a quarterly dividend of 55 1/2 cents a share on its common stock, payable March 15, 2002 to stockholders of record as of February 13, 2002, an annualized increase of 2 cents over the previous annual dividend of $2.20 a share.
"Con Edison's earnings reflect the company's financial strength and the growth of our core business," said Chairman and Chief Executive Officer Eugene R. McGrath. "During a year when turmoil in the utility industry and devastating terrorist attacks caused concern and uncertainty among investors, the discipline of our financial policies and the skill and dedication of our workforce helped provide our investors with solid earnings and a very good return on their investments. The strength and resilience of Con Edison's energy delivery infrastructure, which we continue to reinforce and expand, will ensure that as the economy recovers, our customers will be able to count on the most reliable energy delivery system in the world to meet their energy needs."
"Our shareholders benefited from a solid 11 percent total return in 2001. Today's increase in the dividend, the 28th consecutive annual increase, reflects our confidence in the company's future," said Joan S. Freilich, Executive Vice President and Chief Financial Officer.
For the fourth quarter of 2001, the company's net income for common stock was $125.1 million or $0.59 a share, compared with $46.1 million or $0.22 a share for the fourth quarter of 2000. Excluding the non-recurring charges, earnings per share for the 2000 period would have been $0.53 a share.
Electric sales for Con Edison of New York, after excluding the effects of weather, increased by 2.4 percent for the year 2001 when compared to the prior year, and firm gas sales increased by 2.8 percent.
Earnings for the year 2001 reflect electric rate reductions for Con Edison of New York effective October 1, 2000 and April 1, 2001 in accordance with the company's 1997 and 2000 regulatory agreements. These reductions were largely offset by the impact of warmer than normal summer weather, increased pension credits and lower operating costs, reflecting continued emphasis on cost control and technology-driven productivity improvements.
The company's unregulated businesses contributed $0.05 a share to earnings in 2001, compared with $0.04 cents in 2000.
The company estimates that it will incur approximately $400 million of costs for emergency response to the September 11, 2001 attack on the World Trade Center, and for resulting temporary and, subsequently, permanent restoration of electric, gas and steam transmission and distribution facilities damaged in the attack. Most of the costs are expected to be capital in nature. The company estimates that its insurers will cover approximately $65 million of the costs. The company is seeking Federal reimbursement of the remaining costs. At December 31, 2001, the company had capitalized $54.9 million of such costs as utility plant and deferred $31.9 million of expense as a regulatory asset.
The company expects that its earnings for the year 2002 will be in the range of $3.15 to $3.25 a share. This forecast reflects the current economic downturn and expectations for the timing of recovery.
This 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 approximately $10 billion in annual revenues and approximately $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 www.conedison.com.
CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT THREE MONTHS ENDED DECEMBER 31, 2001 AND 2000 2001 2000 (Thousands of Dollars) Operating revenues Electric $1,401,204 $1,566,397 Gas 292,143 367,589 Steam 77,115 124,440 Non-utility 172,141 191,700 Total operating revenues 1,942,603 2,250,126 Operating expenses Purchased power 701,230 920,149 Fuel 52,698 111,626 Gas purchased for resale 135,970 226,547 Other operations 262,478 281,172 Maintenance 84,377 108,103 Depreciation and amortization 121,244 147,282 Taxes, other than income tax 261,077 227,000 Income tax 84,712 51,022 Total operating expenses 1,703,786 2,072,901 Operating income 238,817 177,225 Other income (deductions) Investment income 3,584 15 Allowance for equity funds used during construction 494 848 Other income less miscellaneous deductions (15,045) (34,970) Income tax 9,292 12,937 Total other income (deductions) (1,675) (21,170) Income before interest charges 237,142 156,055 Interest on long-term debt 98,799 97,624 Other interest 12,569 11,091 Allowance for borrowed funds used during construction (2,734) (2,141) Net interest charges 108,634 106,574 Net income 128,508 49,481 Preferred stock dividend requirements 3,398 3,398 Net income for common stock $125,110 $46,083 Common shares outstanding - average basic (000) 212,231 212,004 Common shares outstanding - average diluted (000) 213,145 212,642 Basic earnings per share $0.59 $0.22 Diluted earnings per share $0.59 $0.21 Consolidated Edison, Inc. Utility Sales Electric (thousands of kilowatthours) Total sales in service territory 13,826,475 13,861,234 Gas (dekatherms) Firm sales and transportation 27,209,611 33,629,019 Steam (thousands of pounds) 4,291,536 6,340,447 CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT TWELVE MONTHS ENDED DECEMBER 31, 2001 AND 2000 2001 2000 (Thousands of Dollars) Operating revenues Electric $6,887,863 $6,938,128 Gas 1,465,957 1,261,970 Steam 503,736 452,135 Non-utility 776,406 779,158 Total operating revenues 9,633,962 9,431,391 Operating expenses Purchased power 3,630,542 3,644,675 Fuel 393,830 350,816 Gas purchased for resale 859,961 789,080 Other operations 1,061,950 1,146,598 Maintenance 430,291 458,046 Depreciation and amortization 526,235 586,407 Taxes, other than income tax 1,139,127 1,121,843 Income tax 464,553 317,790 Total operating expenses 8,506,489 8,415,255 Operating income 1,127,473 1,016,136 Other income (deductions) Investment income 9,435 8,476 Allowance for equity funds used during construction 1,281 1,299 Other income less miscellaneous deductions (33,396) (32,660) Income tax 21,922 10,622 Total other income (deductions) (758) (12,263) Income before interest charges 1,126,715 1,003,873 Interest on long-term debt 396,948 363,994 Other interest 41,823 49,527 Allowance for borrowed funds used during construction (7,891) (6,076) Net interest charges 430,880 407,445 Net income 695,835 596,428 Preferred stock dividend requirements 13,593 13,593 Net income for common stock $682,242 $582,835 Common shares outstanding - average basic (000) 212,147 212,186 Common shares outstanding - average diluted (000) 212,920 212,418 Basic earnings per share $3.22 $2.75 Diluted earnings per share $3.21 $2.74 Consolidated Edison, Inc. Utility Sales Electric (thousands of kilowatthours) Total sales in service territory 58,185,910 56,457,137 Gas (dekatherms) Firm sales and transportation 123,367,711 125,939,689 Steam (thousands of pounds) 25,327,694 26,733,260SOURCE Consolidated Edison, Inc.
CONTACT: Michael Clendenin of Consolidated
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