NewsCon Edison Media Relations
For Immediate Release: January 27, 2005
CONSOLIDATED EDISON, INC. REPORTS 2004 EARNINGS
|For the year ended December 31,||For the quarter ended December 31,|
|Earnings||Earnings per share||Earnings||Earnings per share|
|(Million of Dollars, except earnings per share)||2004||2003||2004*||2003||2004||2003||2004*||2003|
|Reported net income for common stock and earnings per share – GAAP Basis||$537||$528||$2.28||$2.39||$51||$50||$0.21||$0.21|
|One-time rate plan charges||80||-||0.34||-||65||-||0.27||-|
|Discontinued operations of Con Edison Communications**||12||109||0.05||0.50||1||90||0.01||0.40|
|Unregulated generating asset impairments||-||10||-||0.05||-||10||-||0.05|
|Settlement regarding nuclear generating unit sold in 2001||-||5||-||0.03||-||5||-||0.03|
|Cumulative effect of changes in accounting principles||-||(3)||-||(0.02)||-||(3)||-||(0.02)|
* The earnings per share variations shown above include the dilutive effect of higher weighted average number of common shares outstanding in the three months and the year ended December 31, 2004.
** The 2003 amounts include an after-tax impairment charge of $84 million, or $0.38 per share.
The following table represents an analysis of the major factors affecting Con Edison's earnings per share from ongoing operations for the year and fourth quarter of 2004 compared with the 2003 periods:
|Year 2004 vs. 2003||4th quarter 2004 vs.2003|
|Con Edison of New York:|
|Impact of weather in 2004 on net revenues versus 2003 (estimated)||$(0.02)||$(0.01)|
|Sales growth and other revenue factors (estimated)||0.15||0.08|
|Increased pension & other post-retirement benefit costs||(0.08)||(0.03)|
|Higher depreciation and property tax expense||(0.13)||(0.04)|
|Higher operations and maintenance expense||(0.11)||(0.10)|
|Lower interest expense, primarily on long-term debt||0.06||0.03|
|Allowance for funds used during construction and other income||0.09||0.01|
|Total Con Edison of New York||(0.16)||(0.17)|
|Orange and Rockland Utilities||(0.02)||-|
|Con Edison Development||(0.01)||-|
|Con Edison Energy||-||-|
|Con Edison Solutions||(0.08)||(0.02)|
|Other (parent and inter-company accounting)||(0.01)||0.01|
|Total earnings per share variation from ongoing operations||$(0.28)||$(0.18)|
The earnings per share from ongoing operations variations shown above include the dilutive effect of higher weighted average number of common shares outstanding in the three months and the year ended December 31, 2004. The weighted average numbers of common shares were 242 million shares and 236 million shares for the three months and year ended December 31, 2004, compared with 226 million shares and 221 million shares in the 2003 periods, respectively. The dilutive effect on earnings per share from ongoing operations for the three months and year ended December 2004 is $0.03 and $0.18, respectively. These amounts per share do not reflect the offsetting benefits of avoided interest expense.
The company's earnings for the fourth quarter of 2004 reflect the new gas and steam rate increases, partially offset by warm fall weather. The lower fourth quarter and year-end results also include a reduction in net credits for pensions and other post-retirement benefits and higher operations and maintenance expense, principally related to work we are doing to improve the safety of steam manholes. In addition, higher depreciation and property taxes in 2004 reflect large continuing investments in energy delivery infrastructure.
The results for the unregulated energy businesses in 2004 reflect lower gross margins on wholesale and retail electric sales and higher costs related to generating plants placed in service in mid-2003, offset in part by higher mark-to-market gains on forward transactions.
Amounts of electricity and firm gas delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.4 percent and 0.6 percent, respectively, in 2004, while steam deliveries decreased 0.4 percent, as compared with the 2003 period. The 2003 amounts were also adjusted for the August 2003 regional power outage.
Construction expenditures are estimated at $1.6 billion per year for 2005 and 2006 and $1.7 billion for 2007, compared with $1.3 billion in 2004. Virtually all of the estimated construction expenditures are for the company's regulated utilities. The company does not expect to issue new equity in 2005, other than an estimated $95 million to be issued through its dividend reinvestment and employee stock plans.
This press release contains certain forward-looking statements of future expectations and financial measures not determined in accordance with Generally Accepted Accounting Principles (non-GAAP) financial measures. Actual results might differ materially from those projected in the forward looking statements because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission. "Earnings from ongoing operations" excludes the impact of unusual items. Earnings from ongoing operations should not be considered as an alternative to net income, which is an indicator of operating performance determined in accordance with GAAP. Management uses earnings and earnings per share from ongoing operations to facilitate the analysis of the company's ongoing performance as compared to its internal budgets and previously reported financial results. Management believes that earnings from ongoing operations, although a non-GAAP measure, are also useful and meaningful to investors. Other companies may use different measures to present financial performance.
Refer to the attachments to this press release for the condensed consolidated balance sheets at December 31, 2004 and 2003 and the consolidated income statements for 2004 and 2003. For additional information related to utility sales and revenues go to the Con Edison Web site at www.conedison.com, select "Investor Information" and then select "Financial Reports."
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with $10 billion in annual revenues and approximately $23 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following 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 supply and services company; Con Edison Energy, a wholesale energy supply company; and Con Edison Development, a company that owns and operates generating plants and participates in other infrastructure projects.
Income Statements (PDF Format)