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Con Edison, Inc. Reports 2005 First Quarter Earnings
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NEW YORK, April 21 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported net income for common stock for the first quarter of 2005 of $181 million or 75 cents a share, compared with earnings of $155 million or 69 cents a share for the first quarter of 2004. The company also declared a quarterly dividend of 57 cents a share on its common stock payable June 15, 2005 to stockholders of record as of May 18, 2005.

"Our improved performance for the first quarter reflects the continued strengthening of the local economy and Con Edison of New York's new gas and steam rate plans, which have their greatest effect in the winter months," said Eugene R. McGrath, Chairman and Chief Executive Officer.

The following table shows the major factors affecting basic earnings per share for the first quarter of 2005 compared with 2004:

                                                                  Earnings per
                                                                      Share
                                                                    Variation

    Con Edison of New York:
         Sales growth (estimated)                                      $0.04
         Impact of weather in 2005 versus 2004 (estimated)             (0.01)
         Gas rate changes (estimated)                                   0.04
         Retention of non-firm gas revenues                             0.04
         Steam rate changes (estimated)                                 0.09
         Increased pension and other postretirement benefit costs      (0.06)
         Higher operation and maintenance expense                      (0.04)
         Higher depreciation and property tax expense                  (0.04)
         Other                                                         (0.03)
    Total Con Edison of New York                                        0.03
    Orange and Rockland Utilities                                          -
    Unregulated energy subsidiaries                                     0.02
    Total earnings per share variation from continuing operations      $0.05
    Discontinued operations - Con Edison Communications                 0.01
    Total earnings per share variation                                 $0.06

The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2005 period (243 million shares) than in the 2004 period (226 million shares).

For the three months ended March 31, 2005, amounts of electricity, firm gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 2.2 percent, 3.8 percent and 3.1 percent, respectively, as compared with the 2004 period.

For Con Edison of New York, the variation in pension and other postretirement benefit costs reflects primarily lower net pension credits from the amortization of previous years' net investment gains and losses. Higher operation and maintenance expense includes costs of moving facilities to avoid interfering with government projects. The gas and steam rate plans that went into effect in October 2004 and the new electric rate plan described below address these increased cost levels.

In March, the New York Public Service Commission approved a three-year electric rate plan for Con Edison of New York's electric delivery service. Under this plan, rates were increased $104.6 million, effective April 1, 2005, and will be increased $220.4 million effective April 1, 2007. Additional plan provisions include amortization of certain regulatory assets and liabilities, which will increase electric revenues by $128 million, $173 million and $249 million in the first, second and third rate years, respectively; retention by the company of the first $60 million per year of proceeds from the sale of transmission rights; retention of a portion of earnings in excess of an 11.4 percent return on common equity; annual reconciliations of utility plant carrying cost, pension and other postretirement benefit costs and certain other costs to levels reflected in rates (with the difference, in some cases subject to certain limitations, deferred as regulatory assets or liabilities); and potential earnings adjustments if the company meets specified standards in its retail access and demand side management programs or fails to meet specified operational standards.

For the year 2005, the Company confirms its previous forecast of earnings in the range of $2.75 to $2.90 per share.

Refer to the attachments to this press release for the condensed consolidated balance sheets at March 31, 2005 and December 31, 2004 and the consolidated income statements for the three months ended March 31, 2005 and 2004. For additional information related to utility sales and revenues go to the Con Edison Web site at http://www.conedison.com, select "Investor Information" and then select "Financial Reports."

This 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 approximately $10 billion in annual revenues and $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; 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.


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

                                             March 31, 2005  December 31, 2004
    ASSETS                                           (Millions of Dollars)
    PLANT, AT ORIGINAL COST
      Utility plant - net                          $15,400           $15,168
      Non-utility plant - net                          867               873
      Non-utility property held for sale                69                65
    NET PLANT                                       16,336            16,106
    CURRENT ASSETS
      Cash and temporary cash investments              477                26
      Accounts receivable - customers, less
       allowance for uncollectible accounts            825               760
      Other receivables, less allowance for
       uncollectible accounts                          127               179
      Inventories                                      190               307
      Prepayments                                      245                93
      Current assets held for sale                       6                 5
      Other current assets                             539               345
    TOTAL CURRENT ASSETS                             2,409             1,715
    INVESTMENTS                                        258               257
    DEFERRED CHARGES, REGULATORY ASSETS
     AND NONCURRENT ASSETS
      Goodwill                                         406               406
      Intangible assets - net                           98               100
      Prepaid pension costs                          1,455             1,442
      Regulatory assets                              2,188             2,263
      Noncurrent assets held for sale                    1               -
      Other deferred charges and noncurrent assets     279               271
    TOTAL DEFERRED CHARGES, REGULATORY
     ASSETS AND NONCURRENT ASSETS                    4,427             4,482
    TOTAL ASSETS                                   $23,430           $22,560

    CAPITALIZATION AND LIABILITIES
    CAPITALIZATION
      Common shareholders' equity                   $7,139            $7,054
      Preferred stock of subsidiary                    213               213
      Long-term debt                                 6,947             6,561
    TOTAL CAPITALIZATION                            14,299            13,828
    NONCURRENT LIABILITIES
      Provision for injuries and damages               181               180
      Pension and retiree benefits                     234               207
      Superfund and other environmental costs          233               198
      Noncurrent liabilities held for sale               6                 5
      Other noncurrent liabilities including
       minority interest                               140               134
    TOTAL NONCURRENT LIABILITIES                       794               724
    CURRENT LIABILITIES
      Long-term debt due within one year               469               469
      Notes payable                                     50               156
      Accounts payable                                 874               920
      Customer deposits                                232               234
      Current liabilities held for sale                  7                11
      Other current liabilities                        578               434
    TOTAL CURRENT LIABILITIES                        2,210             2,224
    DEFERRED CREDITS AND REGULATORY
     LIABILITIES
      Deferred income taxes and investment
       tax credits                                   3,757             3,726
      Regulatory liabilities and other
       deferred credits                              2,370             2,058
    TOTAL DEFERRED CREDITS AND REGULATORY
     LIABILITIES                                     6,127             5,784
    TOTAL CAPITALIZATION AND LIABILITIES           $23,430           $22,560


                                                                 Attachment B
                          Consolidated Edison, Inc.
                        CONSOLIDATED INCOME STATEMENT
                                 (Unaudited)

                                          For the Three Months Ended March 31,
                                                      2005              2004
                                       (Millions of Dollars/Except Share Data)
    OPERATING REVENUES
         Electric                                   $1,513            $1,539
         Gas                                           728               645
         Steam                                         267               235
         Non-utility                                   293               260
    TOTAL OPERATING REVENUES                         2,801             2,679
    OPERATING EXPENSES
         Purchased power                               940               930
         Fuel                                          191               185
         Gas purchased for resale                      452               401
         Other operations and maintenance              414               378
         Depreciation and amortization                 141               136
         Taxes, other than income taxes                270               282
         Income taxes                                  110               108
    TOTAL OPERATING EXPENSES                         2,518             2,420
    OPERATING INCOME                                   283               259
    OTHER INCOME (DEDUCTIONS)
         Investment and other income                     6                11
         Allowance for equity funds used
          during construction                            7                 6
         Preferred stock dividend
          requirements of subsidiary                    (3)               (3)
         Other deductions                               (6)               (3)
         Income taxes                                    4                 2
    TOTAL OTHER INCOME (DEDUCTIONS)                      8                13
    INTEREST EXPENSE
         Interest on long-term debt                    107               108
         Other interest                                  9                10
         Allowance for borrowed funds
          used during construction                      (6)               (4)
    NET INTEREST EXPENSE                               110               114
    INCOME FROM CONTINUING OPERATIONS                  181               158
    LOSS FROM DISCONTINUED OPERATIONS
     (NET OF INCOME TAXES OF $2 IN 2004)               -                  (3)
    NET INCOME                                        $181              $155
    EARNINGS PER COMMON SHARE - BASIC
    Continuing operations                            $0.75             $0.70
    Discontinued operations                            -              $(0.01)
    Net income                                       $0.75             $0.69
    EARNINGS PER COMMON SHARE - DILUTED
    Continuing operations                            $0.75             $0.69
    Discontinued operations                            -              $(0.01)
    Net income                                       $0.75             $0.68
    AVERAGE NUMBER OF SHARES OUTSTANDING
     - BASIC  (IN MILLIONS)                          242.7             226.2
    AVERAGE NUMBER OF SHARES OUTSTANDING
     - DILUTED (IN MILLIONS)                         243.4             227.2

SOURCE Consolidated Edison, Inc. -0- 04/21/2005 /CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111/ /Web site: http://www.coned.com / (ED)

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