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Con Edison, Inc. Reports Second Quarter Earnings - Company Reaffirms 2003 Earnings Projection

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Con Edison Media Relations
Contact: Chris Olert
Telephone: (212) 460-4111

For Immediate Release: July 17, 2003

CON EDISON, INC. REPORTS SECOND QUARTER EARNINGS
Company Reaffirms 2003 Earnings Projection

NEW YORK - Consolidated Edison, Inc. (NYSE: ED) today reported net income for common stock for the second quarter of 2003 of $66 million or 29 cents a share, compared with earnings of $98 million or 46 cents a share, for the second quarter of 2002. The company also declared a quarterly dividend of 56 cents a share on its common stock payable September 15, 2003 to stockholders of record as of August 13, 2003.

“Our energy delivery systems continue to perform very well,” said Eugene R. McGrath, Chairman and Chief Executive Officer. “Our earnings were impacted by the unseasonably cool spring weather. We see continued growth in demand for our services, and on June 26, we set a new all-time electric peak load for that month.”

The company’s net income for common stock for the first six months of 2003 was $220 million or $1.01 a share, compared with $244 million or $1.14 a share for the first six months of 2002. Net income for the 2002 period includes 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 six months of 2002 was $264 million or $1.24 a share.

The company’s earnings for the second quarter of 2003 were negatively affected by lower electric deliveries related to the exceptionally cool weather. For the first six months of 2003, this reduction partially offset the positive impact of increased energy sales in the first quarter, as compared with the corresponding 2002 period, related to colder than normal winter weather. In addition, earnings for both 2003 periods were impacted by a reduction in net credits for pension and other post-retirement benefits as compared with 2002.

For the three months ended June 30, 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 increased 0.3 percent, 0.5 percent and 1.3 percent, respectively, as compared to the 2002 period.

For the first six 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, increased 1.7 percent, 2.3 percent and 1.0 percent, respectively, as compared to the 2002 period.

For the full year 2003, the company reaffirms its previous forecast of earnings in the 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 second quarter of 2003 compared with 2002:
2nd Quarter 2003 Compared With 2002 Earnings Per Share ($)
Con Edison of New York:
  Impact of weather in 2003 on net revenues versus 2002 (estimated) $(0.06)
  Sales growth from factors other than weather (estimated) 0.03
  Reduced net credit for pensions & other post-retirement benefits (0.08)
  Higher depreciation and property tax expense (0.03)
  Other (0.02)
Total Con Edison of New York (0.16)
Orange & Rockland Utilities (0.02)
Unregulated subsidiaries and parent company 0.01
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:
Year-to-Date 2003 Compared With 2002 Earnings Per Share ($)
Con Edison of New York:
  Impact of weather in 2003 on net revenues versus 2002 (estimated) $0.07
  Sales growth from factors other than weather (estimated) 0.08
  Reduced net credit for pensions & other post-retirement benefits (0.15)
  Regulatory accounting/amortizations (0.07)
  Higher depreciation and property tax expense (0.06)
  Amortization of divestiture gain in the first quarter of 2002 (0.06)
  Other (0.04)
Total Con Edison of New York (0.23)
Orange & Rockland Utilities -
Unregulated subsidiaries and parent company -
Cumulative effect of change in accounting principle for goodwill impairment in 2002 0.10
Total $(0.13)


During the second quarter of 2003, the company issued 9,570,000 shares of common stock under a public offering, resulting in net proceeds of $378 million.

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. 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.

Income Statements (PDF Format)




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