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Con Edison, Inc. Reports 2005 Second Quarter Earnings

Company Reaffirms 2005 Earnings Projection

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NEW YORK, July 21 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported net income for common stock for the second quarter of 2005 of $115 million or 47 cents a share, compared with earnings of $86 million or 37 cents a share for the second quarter of 2004. The company also declared a quarterly dividend of 57 cents a share on its common stock payable September 15, 2005 to stockholders of record as of August 17, 2005.

"Our solid performance in the second quarter benefited from the continued strengthening of the local economy," said Eugene R. McGrath, Chairman and Chief Executive Officer.

The company's net income for common stock for the first six months of 2005 was $297 million or $1.22 a share compared with $241 million or $1.05 a share for the first six months of 2004.

The following table represents an analysis of the major factors affecting Con Edison's earnings per share for the second quarter and first six months of 2005 compared with the 2004 periods:

                                                   Second Quarter   Six Months
                                                      Variation     Variation
    Con Edison of New York:
         Sales growth (estimated)                        $0.03         $0.07
         Impact of weather in 2005 versus 2004
          (estimated)                                    (0.03)        (0.04)
         Electric rate plan (estimated)                   0.24          0.24
         Gas rate plan (estimated)                        0.03          0.11
         Steam rate plan (estimated)                      0.04          0.13
         Increased pension and other
          postretirement benefit costs                   (0.04)        (0.10)
         Higher operation and maintenance expense        (0.04)        (0.08)
         Higher depreciation and property tax expense    (0.10)        (0.14)
         Other                                           (0.01)        (0.04)
    Total Con Edison of New York                          0.12          0.15
    Orange and Rockland Utilities                            -             -
    Unregulated energy subsidiaries (including
     parent company)                                     (0.02)            -
    Total earnings per share variation from
     continuing operations                               $0.10         $0.15
    Discontinued operations - Con Edison Communications      -          0.02
    Total earnings per share variation                   $0.10         $0.17

The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2005 three-month and six-month periods (243 million shares in each period) than in the 2004 three-month and six-month periods (234 million and 231 million shares, respectively).

For Con Edison of New York, increased revenues under the electric rate plan that took effect in April 2005 and the gas and steam rate plans that took effect in October 2004 address higher expenses for pensions and other postretirement benefits, ongoing operations and maintenance, and depreciation and property taxes, and provide a return on capital invested in the energy infrastructure. The increases in pension and other postretirement benefit costs reflect primarily lower net pension credits from the amortization of previous years' net investment gains and losses. Higher depreciation and property taxes reflect continuing infrastructure investment programs and the commercial start-up of the East River Repowering Project.

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

For the three months ended June 30, 2005, 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 1.5 percent, 2.0 percent and 1.0 percent, respectively, as compared with the 2004 period.

For the first six months of 2005, 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 1.9 percent, 3.2 percent and 2.5 percent, respectively, as compared with the 2004 period.

Refer to the attachments to this press release for the condensed consolidated balance sheets at June 30, 2005 and December 31, 2004 and the consolidated income statements for the three and six months ended June 30, 2005 and 2004. Additional information related to utility sales and revenues is available on 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 which 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 $10 billion in annual revenues and $24 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.


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

                                              June 30, 2005  December 31, 2004
    ASSETS                                           (Millions of Dollars)
    PLANT, AT ORIGINAL COST
      Utility plant - net                          $15,511           $15,168
      Non-utility plant - net                          860               873
      Non-utility property held for sale                70                65
    NET PLANT                                       16,441            16,106
    CURRENT ASSETS
      Cash and temporary cash investments              818*               26
      Accounts receivable - customers, less
       allowance for uncollectible accounts            735               741
      Other receivables, less allowance for
       uncollectible accounts                          179               198
      Inventories                                      267               307
      Prepayments                                      788                93
      Current assets held for sale                       9                 5
      Other current assets                             660               339
    TOTAL CURRENT ASSETS                             3,456             1,709
    INVESTMENTS                                        260               257
    DEFERRED CHARGES, REGULATORY ASSETS
     AND NONCURRENT ASSETS
      Goodwill                                         406               406
      Intangible assets - net                           96               100
      Prepaid pension costs                          1,458             1,442
      Regulatory assets                              1,953             2,258
      Other deferred charges and noncurrent assets     301               282
    TOTAL DEFERRED CHARGES, REGULATORY ASSETS
     AND NONCURRENT ASSETS                           4,214             4,488
    TOTAL ASSETS                                   $24,371           $22,560

    CAPITALIZATION AND LIABILITIES
    CAPITALIZATION
      Common shareholders' equity                   $7,146            $7,054
      Preferred stock of subsidiary                    213               213
      Long-term debt                                 7,190             6,561
    TOTAL CAPITALIZATION                            14,549            13,828

    NONCURRENT LIABILITIES
      Provision for injuries and damages               181               180
      Pension and retiree benefits                     267               207
      Superfund and other environmental
       costs                                           246               198
      Noncurrent liabilities held for sale               6                 5
      Other noncurrent liabilities
       including minority interest                     138               134
    TOTAL NONCURRENT LIABILITIES                       838               724
    CURRENT LIABILITIES
      Long-term debt due within one year               471               469
      Notes payable                                    176               156
      Accounts payable                               1,685*              920
      Customer deposits                                228               232
      Current liabilities held for sale                  9                11
      Other current liabilities                        630               434
    TOTAL CURRENT LIABILITIES                        3,199             2,222
    DEFERRED CREDITS AND REGULATORY
     LIABILITIES
      Deferred income taxes and investment
       tax credits                                   3,703             3,726
      Regulatory liabilities and other
       deferred credits                              2,082             2,060
    TOTAL DEFERRED CREDITS AND REGULATORY
     LIABILITIES                                     5,785             5,786
    TOTAL CAPITALIZATION AND LIABILITIES           $24,371           $22,560

     * Includes $734 million related to an outstanding prepayment of New York
       City property taxes.


                          Consolidated Edison, Inc.
                        CONSOLIDATED INCOME STATEMENT
                                 (Unaudited)


                                      For the Three Months  For the Six Months
                                         Ended June 30,       Ended June 30,
                                        2005       2004      2005       2004
                                     (Millions of Dollars/Except Share Data)
    OPERATING REVENUES
         Electric                     $1,651     $1,531    $3,164     $3,070
         Gas                             354        283     1,082        928
         Steam                            96         93       363        328
         Non-utility                     305        257       598        517
    TOTAL OPERATING REVENUES           2,406      2,164     5,207      4,843
    OPERATING EXPENSES
         Purchased power                 969        890     1,908      1,820
         Fuel                            139        134       331        319
         Gas purchased for resale        201        155       653        557
         Other operations and
          maintenance                    405        359       819        737
         Depreciation and amortization   146        137       287        273
         Taxes, other than income taxes  281        255       551        537
         Income taxes                     39         46       149        153
    TOTAL OPERATING EXPENSES           2,180      1,976     4,698      4,396
    OPERATING INCOME                     226        188       509        447
    OTHER INCOME (DEDUCTIONS)
         Investment and other income      11          4        16         16
         Allowance for equity funds used
          during construction              -          6         8         12
         Preferred stock dividend
          requirements of subsidiary      (3)        (3)       (6)        (6)
         Other deductions                 (4)        (3)      (10)        (6)
         Income taxes                      2          5         6          6
    TOTAL OTHER INCOME (DEDUCTIONS)        6          9        14         22
    INTEREST EXPENSE
         Interest on long-term debt      113        106       219        214
         Other interest                    1          6        10         16
         Allowance for borrowed funds
          used during construction         -         (4)       (6)        (8)
    NET INTEREST EXPENSE                 114        108       223        222
    INCOME FROM CONTINUING OPERATIONS    118         89       300        247
    LOSS FROM DISCONTINUED OPERATIONS
     (NET OF INCOME TAXES OF $2, $2, $2
      and $4)                             (3)        (3)       (3)        (6)
    NET INCOME                          $115        $86      $297       $241
    EARNINGS PER COMMON SHARE - BASIC
    Continuing operations              $0.48      $0.38     $1.23      $1.07
    Discontinued operations            (0.01)     (0.01)    (0.01)     (0.02)
    Net income                         $0.47      $0.37     $1.22      $1.05
    EARNINGS PER COMMON SHARE - DILUTED
    Continuing operations              $0.48      $0.38     $1.23      $1.06
    Discontinued operations            (0.01)     (0.01)    (0.01)     (0.02)
    Net income                         $0.47      $0.37     $1.22      $1.04
    AVERAGE NUMBER OF SHARES
     OUTSTANDING - BASIC
     (IN MILLIONS)                     243.4      234.0     243.1      230.6
    AVERAGE NUMBER OF SHARES
     OUTSTANDING - DILUTED
     (IN MILLIONS)                     244.2      234.9     243.8      231.6

SOURCE Consolidated Edison, Inc. -0- 07/21/2005 /CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460- 4111/ /Web site: http://www.coned.com / (ED)

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