Con Edison Media Relations
CON EDISON, INC. REPORTS 2007 THIRD QUARTER EARNINGS
NEW YORK - Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported 2007 third quarter earnings of $312 million or $1.15 a share, compared with earnings of $231 million or $0.93 cents a share for the third quarter of 2006. The company’s net income for common stock for the first nine months of 2007 was $722 million or $2.73 a share compared with $536 million or $2.17 a share for the first nine months of 2006.
Last year, the company incurred significant costs associated with the 2006 Queens power outage. Absent these costs in 2007, earnings per share and net income were higher in the third quarter of 2007 compared with the third quarter of 2006.
"Our financial performance in the third quarter reflects economic strength in our local economy and the benefit from the significant investments we have made in our system to meet our customers’ growing energy needs," said Kevin Burke, Chairman, President and Chief Executive Officer. “These investments, especially in northwest Queens, helped ensure that our energy-delivery system was well prepared for this year’s peak summer period.”
The company now expects its earnings for the year 2007 to be in the range of $3.25 to $3.40 per share. The company's previous forecast of 2007 earnings was in the range of $3.05 to $3.25 per share. The higher range reflects, among other things, stronger than originally forecasted financial performance at the competitive energy businesses, better than expected electric sales growth, the benefit from the movement of certain customers from interruptible to firm gas service, and the resolution of a deferred tax amortization petition.
Con Edison’s results of operations for the three and nine months ended September 30, 2007, as compared with the 2006 periods, reflect the Queens power outage in 2006, sales growth, the utilities’ rate plans (which are designed to recover increases in certain operations and maintenance expenses, depreciation and property taxes, and interest charges), milder summer weather, the impact of storms, the Manhattan steam main rupture in 2007, and the results of the competitive energy businesses including net mark-to-market effects. The following table presents the estimated effect on earnings per share and net income for the third quarter and first nine months of 2007 as compared to the 2006 periods, resulting from these and other major factors:
The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2007 three-month and nine-month periods (271 million and 265 million shares, respectively) than in the 2006 three-month and nine-month periods (249 million and 247 million shares, respectively).
The percentage changes in the amount of energy delivered by the Utilities, for actual and as adjusted for variations in weather and billing days in the periods (and for gas, net transfers to firm service), for the three and nine months ended September 30, 2007, as compared with the 2006 periods is as follows:
Refer to the company’s Third Quarter Form 10-Q, which was filed today with the Securities and Exchange Commission, for the consolidated balance sheets at September 30, 2007 and December 31, 2006 and the consolidated income statements for the three and nine months ended September 30, 2007 and 2006. 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.”
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 nation’s largest investor-owned energy companies, with approximately $12 billion in annual revenues and $28 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; Consolidated Edison Solutions, Inc., a retail energy supply and services company; Consolidated Edison Energy, Inc., a wholesale energy supply company; and Consolidated Edison Development, Inc., a company that owns and operates generating plants and participates in other infrastructure projects.
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