NewsCon Edison Media Relations
For Immediate Release: January 26, 2006
CON EDISON REPORTS 2005 EARNINGS
NEW YORK - Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported 2005 earnings from continuing operations of $732 million or $3.00 a share, compared with $549 million or $2.33 a share in 2004. The 2004 results include the impact of non-cash after-tax charges totaling $80 million or $0.34 a share related to Con Edison of New Yorks electric, gas and steam rate plans. Including losses from discontinued operations of Con Edison Communications, net income for common stock for 2005 was $719 million or $2.95 a share compared with $537 million or $2.28 a share in 2004.
For the fourth quarter of 2005, the companys earnings from continuing operations were $146 million or $0.59 a share compared with $52 million or $0.22 a share for the fourth quarter of 2004. Results for the fourth quarter of 2004 include $65 million or $0.27 a share of the non-cash charges noted above. Net income for common stock, including discontinued operations was $138 million or $0.56 a share compared with $51 million or $0.21 a share in the 2004 period.
Con Edisons utility operations performed very well under
extreme weather conditions in 2005, said Kevin Burke, the companys
President and Chief Executive Officer. The investments we have
made in our infrastructure over the past few years enabled us to reliably
meet the energy needs of our customers during the summer of 2005. These
investments enable New Yorks economy to continue to grow,
The following table shows the major factors affecting Con Edison's
earnings per share from continuing operations for the year and fourth
quarter of 2005 compared with the 2004 periods:
The earnings per share variations shown above include the dilutive
effect of a higher weighted average number of common shares outstanding
in the three months and year ended December 31, 2005. The weighted average
number of common shares were 245 million shares and 244 million shares
for the three months and year ended December 31, 2005, compared with
242 million shares and 236 million shares in the 2004 periods, respectively.
The dilutive effect on earnings per share from continuing operations
for the three months and year ended December 31, 2005 is $0.01 and $0.10,
respectively. These amounts per share do not reflect the offsetting
benefits of avoided interest expense.
Under the electric rate plan, pension and other postretirement benefit costs and environmental remediation expenses in excess of the amounts reflected in rates were deferred as regulatory assets. Fifty percent ($47 million) of these regulatory assets were offset by estimated electric earnings in excess of the target (11.4% return on common equity) for the rate year ending March 31, 2006. At December 31, 2005, the company had accrued a $6 million reserve for the customers fifty percent share of the remaining above-target earnings.
The performance of the unregulated energy subsidiaries in the fourth quarter of 2005, compared with the 2004 period, reflects primarily decreases in forward prices of electricity that resulted in the reversal of previously recognized unrealized mark-to-market accounting losses.
Amounts of electricity, gas and steam delivered by Con Edison of New York in 2005, after adjusting for variations in weather and billing days in the period, increased 2.4 percent, 2.4 percent and 1.8 percent, respectively, as compared with the 2004 period.
Refer to the attachments to this press release for the condensed consolidated balance sheets at December 31, 2005 and 2004 and the consolidated income statements for 2005 and 2004. Additional information related to utility sales and revenues is available at www.conedison.com (select Investor Information and then select Financial Reports).
This press release contains forward-looking statements that reflect expectations and not facts. Actual results may differ materially from those expectations 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 nations largest investor-owned
energy companies, with approximately $12 billion in annual revenues
and $25 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; Con Edison Development,
a company that owns and operates generating plants and participates
in other infrastructure projects; and Con Edison Communications, a telecommunications
infrastructure company and service provider.