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Con Edison, Inc. Reports 2004 Second Quarter Earnings
Company Reaffirms 2004 Earnings Projections

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NEW YORK, Jul 22, 2004 /PRNewswire-FirstCall via COMTEX/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported net income for common stock for the second quarter of 2004 of $86 million or 37 cents a share, compared with earnings of $66 million or 29 cents a share for the second quarter of 2003. The company also declared a quarterly dividend of 56-1/2 cents a share on its common stock payable September 15, 2004 to stockholders of record as of August 11, 2004.

"Our solid performance in the second quarter is consistent with our earnings forecast for the year," said Eugene R. McGrath, chairman and chief executive officer. "In operations, we energized three new substations, the most in three decades. These events were just a part of our preparation for our growing summer peak loads. They also represent another milestone in our multi-billion dollar investment in the most reliable electric system in the country," he said.

The company's net income for common stock for the first six months of 2004 was $241 million or $1.05 a share compared with $220 million or $1.01 a share for the first six months of 2003.

The following table represents an analysis of the major factors affecting basic earnings per share for the second quarter of 2004 compared with 2003:

                                                              Earnings per
                                                                  Share
                                                                Variation
    Con Edison of New York:
      Impact of weather in 2004 on net revenues
       versus 2003 (estimated)                                    $0.05
      Sales growth and other revenue factors (estimated)           0.06
      Regulatory accounting                                       (0.02)
      Higher depreciation and property tax expense                (0.03)
      Lower interest expense on long-term debt                     0.01
      Other                                                        0.01
    Total Con Edison of New York                                   0.08
    Orange and Rockland Utilities                                  0.01
    Con Edison Communications                                      0.02
    Con Edison Development                                        (0.01)
    Con Edison Energy                                                --
    Con Edison Solutions                                          (0.03)
    Other (parent and inter-company accounting)                    0.01
                        Total earnings per share variation        $0.08

The earnings per share variations shown above include the dilutive effect of a higher weighted average number of common shares outstanding in the 2004 period (234 million shares) than in the 2003 period (219 million shares).

The following table represents an analysis of the major factors affecting basic earnings per share for the first six months of 2004 compared with 2003:

                                                              Earnings per
                                                                  Share
                                                                Variation
    Con Edison of New York:
      Impact of weather in 2004 on net revenues
       versus 2003 (estimated)                                    $0.03
      Sales growth and other revenue factors (estimated)           0.06
      Regulatory accounting                                        0.02
      Higher depreciation and property tax expense                (0.07)
      Lower interest expense on long-term debt                     0.02
      Allowance for equity funds used during construction
       and other income                                            0.03
      Other                                                        0.02
    Total Con Edison of New York                                   0.11
    Orange and Rockland Utilities                                    --
    Con Edison Communications                                      0.03
    Con Edison Development                                        (0.03)
    Con Edison Energy                                                --
    Con Edison Solutions                                          (0.05)
    Other (parent and inter-company accounting)                   (0.02)
                        Total earnings per share variation        $0.04

The earnings per share variations shown above include the dilutive effect of a higher weighted average number of common shares outstanding in the 2004 period (231 million shares) than in the 2003 period (217 million shares).

For the second quarter and the first six months of 2004, Con Edison of New York's earnings variances reflect two significant factors. Higher net revenues in 2004 are due primarily to ongoing sales growth and the warm spring weather as compared with spring 2003. There was more than twice the number of cooling degree days in the second quarter of 2004 billing cycles as in the prior period. Higher depreciation and property taxes in 2004 reflect large continuing investments in energy delivery infrastructure.

The performance of the unregulated subsidiaries and parent in the second quarter and the first six months of 2004 compared with the 2003 periods reflect lower gross margins on electric sales and higher interest expense.

For the full year 2004, the company reaffirms its previous forecast of earnings in the range of $2.50 to $2.70 per share. The forecast reflects increased costs in the second half of the year for pensions and other post-retirement benefits, depreciation and property taxes, and the continued impact of the dilutive effect of common equity issuances. These factors are all addressed in Con Edison of New York's gas and steam proposed agreements and in the current electric rate proceeding.

For the three months ended June 30, 2004, amounts of electricity and gas delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.9 percent and 0.6 percent, respectively, while adjusted steam delivery volumes decreased 1.2 percent, as compared to the 2003 period.

For the first six months of 2004, 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 1.8 percent, 0.8 percent and 0.3 percent, respectively, as compared to the 2003 period.

During the second quarter of 2004, the company issued 14 million shares of common stock under a public offering, resulting in net proceeds of $513 million.

Refer to attachments to this press release for the condensed consolidated balance sheets at June 30, 2004 and December 31, 2003 and the consolidated income statements for the three and six months ended June 30, 2004 and 2003.

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. (NYSE: ED) is one of the nation's largest investor-owned energy companies, with $10 billion in annual revenues and $22 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, 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. For additional financial, operations and customer service information, visit Consolidated Edison, Inc.'s Web site at http://www.conedison.com .


                          CONSOLIDATED EDISON, INC.
                    CONSOLIDATED BALANCE SHEET (Condensed)
                                 (UNAUDITED)

                                                      June 30,    December 31,
                                                        2004          2003
    ASSETS                                             (Millions of Dollars)
    PLANT, AT ORIGINAL COST
     Utility plant -- net                             $14,708       $14,284
     Non-utility plant -- net                             946           941
    NET PLANT                                          15,654        15,225

    CURRENT ASSETS
     Cash and temporary cash investments                  212            49
     Funds held for the redemption of long-term debt      275            --
     Accounts receivable -- customers, less allowance
      for uncollectible accounts                          694           790
     Other receivables, less allowance for uncollectible
      accounts                                            297           184
     Inventories                                          126           133
     Prepayments                                           90            98
     Other current assets                                 397           338
    TOTAL CURRENT ASSETS                                2,091         1,592

    INVESTMENTS                                           253           248

    DEFERRED CHARGES, REGULATORY ASSETS AND
     NONCURRENT ASSETS
     Goodwill                                             406           406
     Intangible assets -- net                             106           111
     Prepaid pension costs                              1,348         1,257
     Regulatory assets                                  2,073         1,861
     Other deferred charges and noncurrent assets         293           266
    TOTAL DEFERRED CHARGES, REGULATORY ASSETS AND
     NONCURRENT ASSETS                                  4,226         3,901
    TOTAL ASSETS                                      $22,224       $20,966

    CAPITALIZATION AND LIABILITIES
    CAPITALIZATION
     Common shareholders' equity                       $6,994        $6,423
     Preferred stock                                      213           213
     Long-term debt                                     6,971         6,733
    TOTAL CAPITALIZATION                               14,178        13,369

    NONCURRENT LIABILITIES
     Provision for injuries and damages                   198           194
     Pension and retiree benefits                         230           205
     Superfund and other environmental costs              200           193
     Other noncurrent liabilities including minority
      interest                                            150           157
    TOTAL NONCURRENT LIABILITIES                          778           749

    CURRENT LIABILITIES
     Long-term debt due within one year                   291           166
     Notes payable                                         40           159
     Accounts payable                                     944           905
     Customer deposits                                    234           228
     Other current liabilities                            419           453
    TOTAL CURRENT LIABILITIES                           1,928         1,911

    DEFERRED CREDITS AND REGULATORY LIABILITIES
     Deferred income taxes and investment tax credits   3,412         3,172
     Regulatory liabilities and other deferred credits  1,928         1,765
    TOTAL DEFERRED CREDITS AND REGULATORY LIABILITIES   5,340         4,937
    TOTAL CAPITALIZATION AND LIABILITIES              $22,224       $20,966


                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
                                 (Unaudited)

                                 For the Three Months     For the Six Months
                                    Ended June 30,          Ended June 30,
                                   2004        2003        2004        2003
                                            (Millions of Dollars)

    Operating revenues
     Electric                    $1,531      $1,561      $3,070      $3,054
     Gas                            283         326         928         946
     Steam                           93          97         328         334
     Non-utility                    262         192         528         412
       Total operating revenues   2,169       2,176       4,854       4,746

    Operating expenses
     Purchased power                890         906       1,820       1,770
     Fuel                           134         102         319         286
     Gas purchased for resale       155         193         557         556
     Other operations and
      maintenance                   370         370         759         759
     Depreciation and amortization  138         130         275         258
     Taxes, other than income tax   256         270         538         556
     Income tax                      44          41         149         141
       Total operating expenses   1,987       2,012       4,417       4,326

    Operating income                182         164         437         420

    Other income (deductions)
     Investment and other income      7           8          20          14
     Allowance for equity funds
      used during construction        6           4          12           6
     Other deductions                (3)         (5)         (6)         (8)
     Income tax                       5           1           6           3
       Total other income
        (deductions)                 15           8          32          15

    Interest expense
     Interest on long-term debt     106          99         214         198
     Other interest expense           6           7          16          16
     Allowance for borrowed funds
      used during construction       (4)         (3)         (8)         (5)
       Net interest expense         108         103         222         209
    Income before preferred stock
     dividends of subsidiary         89          69         247         226
    Preferred stock dividend
     requirements of subsidiary       3           3           6           6
    Net income for common stock     $86         $66        $241        $220

    Earnings per common share
     -- Basic                     $0.37       $0.29       $1.05       $1.01

    Earnings per common share
     -- Diluted                   $0.37       $0.29       $1.04       $1.01

    Average number of shares
     outstanding --
     Basic (in Millions)          234.0       219.3       230.6       217.1
    Average number of shares
      outstanding --
      Diluted (in Millions)       234.9       220.3       231.6       218.0

    Consolidated Edison,
     Inc. - Utility sales
    Electric (thousands of
     kilowatthours)
     Total energy delivered in
      service areas          14,101,153  13,325,188  28,799,202  27,831,992
    Gas (dekatherms)
     Firm sales and
      transportation         23,246,992  24,582,412  80,583,827  83,985,800
     Steam (thousands of
      pounds)                 4,743,702   4,435,485  15,357,270  15,107,574

SOURCE Consolidated Edison, Inc.

Michael Clendenin for Consolidated Edison, Inc., +1-212-460-4111

http://www.coned.com

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