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Con Edison, Inc. Reports 2006 Third Quarter Earnings
3rd Quarter 2006 Sales and Revenue Report

NEW YORK, Nov 02, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2006 third quarter earnings of $231 million or $0.93 a share, compared with earnings of $285 million or $1.17 cents a share for the third quarter of 2005.

"Third quarter results reflect costs associated with the summer power outages and milder weather than last year," said Kevin Burke, Chairman, President and Chief Executive Officer. "We continue to make significant investments throughout our system to meet the growing needs of our customers," he said.

The company's net income for common stock for the first nine months of 2006 was $536 million or $2.17 a share compared with $581 million or $2.39 a share for the first nine months of 2005.

For the year 2006, the company confirms its previous forecast of earnings in the range of $2.75 to $3.00 per share.

The results of operations for the three and nine months ended September 30, 2006, as compared with the 2005 periods, reflect milder weather in 2006, the utilities' rate plans, expenditures related to the 2006 power outages, increased interest expense and the results of the competitive energy businesses including net mark-to-market losses. The following table presents the estimated effect on earnings per share and net income for the third quarter and first nine months of 2006, as compared with the 2005 periods, resulting from these and other major factors:


                                         Third Quarter     Nine Months Ended
                                           Variation           Variation

                                                 Net                 Net
                                                 Income              Income
                                       Earnings  (Millions  Earnings (Millions
                                       per       of         per      of
                                       Share     Dollars)   Share    Dollars)
    Con Edison of New York
         Sales growth                    $0.05       $13    $0.11        $27
         Impact of weather in 2006
          versus 2005                    (0.12)      (31)   (0.24)       (60)
         Electric rate plan               0.10        26     0.52        128
         Gas rate plan                    0.01         3     0.06         14
         Steam rate plan                     -         -     0.05         11
         Queens power outage             (0.16)      (39)   (0.16)       (39)
         Operations and maintenance
          expense - other                (0.11)      (28)   (0.20)       (49)
         Stock-based compensation
          expense                            -        (1)   (0.03)        (7)
         Depreciation and property
          taxes                          (0.04)      (11)   (0.21)       (52)
         Interest charges - timing of
          deductions of
          construction-related costs     (0.06)      (14)   (0.06)       (14)
         Interest charges - other        (0.04)      (11)   (0.10)       (26)
         Other (includes dilutive
          effect of new stock
          issuances)                      0.01        10        -         11

    Total Con Edison of New York         (0.36)      (83)   (0.26)       (56)
    Orange and Rockland Utilities            -        (1)   (0.04)        (9)
    Competitive energy businesses
         Earnings excluding net
          mark-to-market losses           0.09        21     0.21         53
         Net mark-to-market losses        0.04         8    (0.10)       (26)
    Other, including parent company
     expenses                            (0.01)       (1)   (0.05)       (11)
    Discontinued operations                  -         2     0.02          4

    Total variation                     ($0.24)     ($54)  ($0.22)      ($45)


The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2006 three-month and nine-month periods (249 million and 247 million shares, respectively) than in the 2005 three-month and nine-month periods (244 million shares in each period).

For the three months ended September 30, 2006, 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 by 3.9 percent and 0.9 percent compared with the 2005 period, respectively. Steam deliveries, after adjusting for variations in weather and billing days in the period, decreased 0.1 percent compared with the prior period.

For the first nine months of 2006, 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 2.3 percent and 0.3 percent compared with the 2005 period, respectively. Steam deliveries, after adjusting for variations in weather and billing days in the period, decreased 0.8 percent compared with the 2005 period.

Refer to the attachments to this press release for the consolidated balance sheets at September 30, 2006 and December 31, 2005 and the consolidated income statements for the three and nine months ended September 30, 2006 and 2005. 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 $26 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.


                            Consolidated Edison, Inc.
                            CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

                                        September 30, 2006   December 31, 2005
                                                   (Millions of Dollars)
    ASSETS
    UTILITY PLANT, AT ORIGINAL COST
     Electric                                      $14,270             $13,586
     Gas                                             3,182               3,044
     Steam                                           1,676               1,624
     General                                         1,580               1,541
     TOTAL                                          20,708              19,795
     Less: Accumulated depreciation                  4,560               4,355
     Net                                            16,148              15,440
     Construction work in progress                   1,047                 771
    NET UTILITY PLANT                               17,195              16,211
    NON-UTILITY PLANT
     Unregulated generating assets, less
      accumulated depreciation of
      $121 and $102 in 2006 and 2005,
      respectively                                     791                 810
     Non-utility property, less
      accumulated depreciation of $35 and
      $31 in 2006 and 2005, respectively                34                  38
     Non-utility property held for sale                  -                  52
     Construction work in progress                       1                   1
    NET PLANT                                       18,021              17,112
    CURRENT ASSETS
     Cash and temporary cash investments               234                  81
     Restricted cash                                    19                  15
     Accounts receivable - customers, less
      allowance for uncollectible accounts
      of $43 and $39 in 2006 and 2005,
      respectively                                     809               1,025
     Accrued unbilled revenue                          112                 116
     Other receivables, less allowance for
     uncollectible accounts of $4 and $6
       in 2006 and 2005, respectively                  463                 348
     Fuel oil, at average cost                          55                  47
     Gas in storage, at average cost                   260                 248
     Materials and supplies, at average
      cost                                             143                 130
     Prepayments                                       507                 434
     Fair value of derivative assets                   143                 331
     Recoverable energy costs                          155                 221
     Current assets held for sale                        -                   8
     Deferred derivative losses                        196                   9
     Other current assets                              312                 147
    TOTAL CURRENT ASSETS                             3,408               3,160
    INVESTMENTS                                        272                 265
    DEFERRED CHARGES, REGULATORY ASSETS
     AND NONCURRENT ASSETS
      Goodwill                                         406                 406
      Intangible assets, less accumulated
       amortization of $32 and
       $24 in 2006 and 2005, respectively               82                  90
      Prepaid pension costs                          1,482               1,474
      Regulatory assets                              2,193               2,017
      Other deferred charges and noncurrent
       assets                                          277                 324
    TOTAL DEFERRED CHARGES, REGULATORY
     ASSETS AND NONCURRENT ASSETS                    4,440               4,311
    TOTAL ASSETS                                   $26,141             $24,848



                            Consolidated Edison, Inc.
                            CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

                                        September 30, 2006   December 31, 2005
                                                  (Millions of Dollars)
    CAPITALIZATION AND LIABILITIES
    CAPITALIZATION
     Common shareholders' equity                    $7,928              $7,310
     Preferred stock of subsidiary                     213                 213
     Long-term debt                                  8,066               7,398
    TOTAL CAPITALIZATION                            16,207              14,921
    MINORITY INTERESTS                                  41                  42
    NONCURRENT LIABILITIES
     Obligations under capital leases                   27                  30
     Provision for injuries and damages                169                 167
     Pensions and retiree benefits                     258                 223
     Superfund and other environmental
      costs                                            266                 238
     Asset retirement obligations                       98                  94
     Noncurrent liabilities held for sale                -                   9
     Fair value of derivative liabilities              125                  24
     Other noncurrent liabilities                       42                  40
    TOTAL NONCURRENT LIABILITIES                       985                 825
    CURRENT LIABILITIES
     Long-term debt due within one year                444                  22
     Notes payable                                     431                 755
     Accounts payable                                  934               1,234
     Customer deposits                                 225                 229
     Accrued taxes                                      50                  94
     Accrued interest                                  142                 102
     Accrued wages                                      85                  77
     Fair value of derivative liabilities              442                 133
     Deferred derivative gains                           3                 224
     Deferred income taxes - recoverable
      energy costs                                      63                  90
     Current liabilities held for sale                   -                  12
     Other current liabilities                         295                 349
    TOTAL CURRENT LIABILITIES                        3,114               3,321
    DEFERRED CREDITS AND REGULATORY
     LIABILITIES
      Deferred income taxes and investment
       tax credits                                   4,016               3,644
      Regulatory liabilities                         1,753               2,062
      Other deferred credits                            25                  33
    TOTAL DEFERRED CREDITS AND REGULATORY
     LIABILITIES                                     5,794               5,739
    TOTAL CAPITALIZATION AND LIABILITIES           $26,141             $24,848



                            Consolidated Edison, Inc.
                          CONSOLIDATED INCOME STATEMENT
                                   (Unaudited)

                                            For the Three     For the Nine
                                            Months Ended      Months Ended
                                            September 30,     September 30,
                                            2006     2005     2006     2005
                                       (Millions of Dollars/Except Share Data)
    OPERATING REVENUES
         Electric                          $2,478   $2,502   $5,903   $5,646
         Gas                                  211      232    1,404    1,314
         Steam                                104      111      485      474
         Non-utility                          648      492    1,522    1,089
    TOTAL OPERATING REVENUES                3,441    3,337    9,314    8,523
    OPERATING EXPENSES
         Purchased power                    1,587    1,522    3,790    3,411
         Fuel                                 200      222      600      553
         Gas purchased for resale             100      133      845      786
         Other operations and maintenance     556      420    1,433    1,239
         Depreciation and amortization        155      147      460      434
         Taxes, other than income taxes       328      323      945      874
         Income taxes                         140      173      310      322
    TOTAL OPERATING EXPENSES                3,066    2,940    8,383    7,619
    OPERATING INCOME                          375      397      931      904
    OTHER INCOME (DEDUCTIONS)
         Investment and other income           10       11       30       29
         Allowance for equity funds used
          during construction                   2        -        3        8
         Preferred stock dividend
          requirements of subsidiary           (3)      (3)      (8)      (8)
         Other deductions                      (3)      (3)     (12)     (14)
         Income taxes                          11        5       10       10
    TOTAL OTHER INCOME (DEDUCTIONS)            17       10       23       25
    INTEREST EXPENSE
         Interest on long-term debt           123      111      356      330
         Other interest                        40        9       65       19
         Allowance for borrowed funds
          used during construction             (2)       -       (4)      (6)
    NET INTEREST EXPENSE                      161      120      417      343
    INCOME FROM CONTINUING OPERATIONS         231      287      537      586
    LOSS FROM DISCONTINUED OPERATIONS
     (NET OF INCOME TAXES)                      -       (2)      (1)      (5)
    NET INCOME                               $231     $285     $536     $581
    EARNINGS PER COMMON SHARE - BASIC
    Continuing operations                   $0.93    $1.17    $2.17    $2.41
    Discontinued operations                     -        -        -    (0.02)
    Net income                              $0.93    $1.17    $2.17    $2.39
    EARNINGS PER COMMON SHARE - DILUTED
    Continuing operations                   $0.92    $1.17    $2.16    $2.40
    Discontinued operations                     -    (0.01)       -    (0.02)
    Net income                              $0.92    $1.16    $2.16    $2.38
    DIVIDENDS DECLARED PER SHARE OF
     COMMON STOCK                          $0.575   $0.570   $1.725   $1.710
    AVERAGE NUMBER OF SHARES OUTSTANDING
     - BASIC  (IN MILLIONS)                 249.0    244.4    247.0    243.5
    AVERAGE NUMBER OF SHARES OUTSTANDING
     - DILUTED (IN MILLIONS)                250.0    245.4    248.0    244.2


SOURCE Consolidated Edison, Inc.

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

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