Con Edison Media Relations
Contact: Michael Clendenin
Telephone: (212) 460-4111
For Immediate Release: October 18, 2001
Con Edison Reports Solid Third Quarter Earnings;
Expresses Confidence in Resilience of New York Economy
New York -- Consolidated Edison, Inc. [NYSE: ED] today (THURSDAY, October 18, 2001) reported net income for common stock for the third quarter of 2001 of $277.3 million or $1.31 a share, compared with earnings of $279.9 million or $1.32 a share for the third quarter of 2000. The company also declared a quarterly dividend of 55 cents a share on its common stock payable December 15, 2001 to stockholders of record as of November 14, 2001.
"The overwhelming response of individuals, businesses, as well as government officials to the September 11th attacks on our city and our nation confirms our belief that the spirit and the economic base of New York are strong and resilient and that the economic effects of the attacks will be limited in scope and duration," said Chairman and Chief Executive Officer Eugene R. McGrath. "Con Edison and its 14,000 men and women will contribute their individual and corporate strengths to the restoration of our great City, while continuing to work hard for our investors."
The company's net income for common stock for the first nine months of 2001 was $557.1 million or $2.63 a share, compared with $536.8 million or $2.53 a share for the first nine months of 2000.
The company's net income for common stock for the 12 months ended September 30, 2001 was $603.2 million or $2.84 a share, compared with $658.3 million or $3.09 a share for the 12 months ended September 30, 2000.
Excluding non-recurring charges for the year 2000, earnings per share for the third quarter, first nine months and 12 months ended September 30, 2000 would have been $1.40, $2.71 and $3.27, respectively, while the earnings per share for the 12 months ended September 30, 2001 would have been $3.16.
The company's earnings for the third quarter and first nine months of 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. The impact of these reductions is being offset by higher electric and firm gas sales and increased pension credits.
Electric sales for Con Edison of New York, after excluding the effects of weather, increased by 3.0 percent for the first nine months of 2001 when compared to the prior year, and firm gas sales increased by 2.1 percent. The electric peak exceeded prior records on several days in 2001. On August 9, 2001, Con Edison reported all-time highs for energy demand when the electric peak load reached 12,207 megawatts. The previous record peak of 11,850 megawatts was reached on July 6, 1999.
Also, on July 25, hourly gas throughput on the Con Edison gas distribution system reached a new record of 58,759 dekatherms. On Thursday, August 9, a new summer total gas system daily delivery record of 1,077,858 dekatherms was achieved.
The attacks of September 11th destroyed or severely damaged a number of buildings in lower Manhattan. The electric peak of these buildings totaled approximately 140 MWs, which is about 1.1 percent of Con Edison's peak delivery load this past summer. The annual after-tax impact of the loss of electric, gas and steam services to these buildings is approximately $15 million.
In addition, two Con Edison electric substations were destroyed, and certain electric, gas and steam facilities were damaged. The estimated cost for the temporary restoration of service and for permanent restoration of the lower Manhattan systems to prior levels of reliability is approximately $400 million. Through September 30, $50 million of costs have been incurred, of which $12 million was charged to capital and $38 million of expenses were deferred. Almost all of the remaining amount to be spent will be capital investment. Con Edison is seeking Federal reimbursement for its response and recovery costs.
For the full year 2001, the company narrowed its forecast earnings range to $3.20 to $3.25 a share, reflecting the short-term economic impact of the September 11th attacks, partially offset by stringent cost controls.
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 www.conedison.com.
Income Statements Attached (PDF format)