Con Edison Media Relations
Contact: Michael Clendenin
Telephone: (212) 460-4111
For Immediate Release: July 18, 2002
Con Edison, Inc. Reports Second Quarter Earnings and Declares Dividend
NEW YORK - Consolidated Edison, Inc. [NYSE: ED] today (Thursday, July 18, 2002) reported net income for common stock for the second quarter of 2002 of $97.6 million or $.46 a share, compared with earnings of $100.7 million or $.48 a share for the second quarter of 2001. The company also declared a quarterly dividend of 55 ½ cents a share on its common stock payable September 15, 2002 to stockholders of record as of August 14, 2002. Con Edison has raised its annual dividend level each year for the past 28 years, most recently in January 2002.
“Our energy delivery systems are performing very well, the outlook for the regional economy is good, and we continue to make the investments in our system that will keep the system robust and ready to meet the growing energy needs of New York with the highest level of reliability,” said Eugene R. McGrath, Chairman and Chief Executive Officer. “Thanks to the dedication and skill of our operating forces, we have completed the rebuilding of one of the substations we lost on September 11, as well as the related lower Manhattan energy distribution networks, and have begun rebuilding the remaining facilities.”
The company's net income for common stock for the first six months of 2002 was $264.2 million or $1.24 a share, compared with $279.8 million or $1.32 a share for the first six months of 2001. The company's earnings are generated substantially from its core regulated transmission and distribution business.
The company's net income for common stock for the 12 months ended June 30, 2002 was $666.6 million or $3.14 a share, compared with $605.7 million or $2.86 a share for the 12 months ended June 30, 2001. Absent the effect of previously reported non-recurring charges in 2000 for nuclear replacement power and merger-related costs, earnings for the 12 months ended June 30, 2001 would have been $691.5 million or $3.26 a share.
The company's earnings for the second quarter and first six months of 2002 reflect the impact of the unusually mild winter and spring weather and softness in the economy, partially offset by lower operating expenses. After adjusting for variations in weather and billing days in each period, electric, firm gas, and steam delivered by Con Edison of New York decreased by 0.1 percent, 0.1 percent, and 0.4 percent respectively, for the first six months of 2002 when compared to the prior year. The impact on earnings of the late June and early July heat waves will be reflected in third quarter earnings.
The Financial Accounting Standards Board has changed the accounting for goodwill, and the company has modified its accounting to meet this new standard. Based on reviews conducted in accordance with SFAS No. 142, "Goodwill and Other Intangible Assets," the company expects to record in 2002 a non-cash impairment charge of approximately $20 million after tax in relation to certain generating assets owned by Con Edison Development.
The company is currently forecasting its earnings range for 2002 to be $3.10 to $3.20 per share, excluding the goodwill adjustment. The primary cause of the modest reduction in earnings expectations from prior forecasts is the impact of the extremely mild weather during the first half of the year, particularly on steam sales.
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)