Con Edison Media Relations
Contact: Michael Clendenin
Telephone: (212) 460-4111
For Immediate Release: October 17, 2002
Con Edison, Inc. Reports Third Quarter Earnings and Declares Dividend
Consolidated Edison, Inc. [NYSE: ED] today (THURSDAY, OCTOBER 17, 2002) reported net income of $283.7 million for the third quarter of 2002 or $1.34 a share, compared with earnings of $277.3 million or $1.31 a share for the third quarter of 2001. The company's net income for the first nine months of 2002 before cumulative effect of a change in accounting principle was $547.9 million or $2.58 a share, compared with earnings of $557.1 million or $2.63 a share for the nine months ended September 30, 2001. In its Statement No. 142 "Goodwill and Other Intangible Assets," the Financial Accounting Standards Board changed the accounting for goodwill. The company has modified its accounting to meet this new standard and as a result has recorded a one-time non-cash impairment charge of $20.2 million after tax. Including this charge, net income for the nine months ended September 30, 2002 was $527.7 million or $2.48 a share. The one-time impairment charge, as required under SFAS No. 142, is retroactive to January 1, 2002 and is attributable to generating assets owned by Con Edison Development.
The company also declared a quarterly dividend of 55 ½ cents a share on its common stock payable December 15, 2002 to stockholders of record as of November 13, 2002.
"Con Edison is on target for another solid year in 2002. Our utility systems are performing very well and we continue to maintain effective cost controls as we focus on the basics of our business," said Eugene R. McGrath, Chairman and Chief Executive Officer. "In a challenging economic environment, our financial condition remains strong with a solid balance sheet, good liquidity and above average debt ratings," McGrath added.
For the full year 2002, the company is reaffirming its earnings range of $3.10 to $3.20 a share, excluding the goodwill impairment charge.
The company's earnings for the third quarter reflect the impact of the summer heat wave offset in part by the soft economy. For the first nine months of 2002 the company's earnings also reflect the impact of the mild winter weather particularly on steam sales, partially offset by reduced operations and maintenance expenses. The company's earnings are generated substantially from its core regulated transmission and distribution business.
"For June, July and August of 2002, the company set a new three-month electric delivery record of more than 17 million megawatt hours," said Kevin Burke, President of Con Edison of New York. "We saw five of our ten highest peak load days this summer. We are continuing our investment in our energy infrastructure to be ready to meet our customers' growing energy needs," he said. After adjusting for variations in weather and billing days in each period, electricity delivered by Con Edison of New York increased by 0.3 percent, while firm gas and steam delivered by Con Edison of New York decreased by 0.4 percent and 4.6 percent respectively, for the first nine months of 2002 when compared to the prior year.
The company's net income before cumulative effect of change in accounting principle for the 12 months ended September 30, 2002 was $673.0 million or $3.17 a share. Net income for common stock, after the one-time non-cash impairment charge, for the 12 months ended September 30, 2002 amounted to $652.8 million or $3.07 a share. Earnings for the 12 months ended September 30, 2001 were $603.2 million or $2.84 a share. Absent the effect of previously reported non-recurring charges of $67.6 million after tax in 2000, earnings for the 12 months ended September 30, 2001 would have been $670.8 million or $3.16 a share.
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 over $8 billion in annual revenues and $18 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)