NEW YORK, NY, May 03, 2012 (MARKETWIRE via COMTEX) --Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported
first quarter earnings of $277 million or $0.95 a share compared with
$311 million or $1.07 a share in 2011. Earnings from ongoing
operations, which exclude the net mark-to-market effects of the
competitive energy businesses, were $295 million or $1.01 a share
compared with $289 million or $0.99 a share in 2011.
"First quarter results were in line with expectations," said Con
Edison's Chairman, President and Chief Executive Officer Kevin Burke.
"Our field operations benefited from a milder than normal winter,
while providing the reliability our customers expect and deserve. We
have continued to promote energy efficiency programs and oil-to-gas
conversions, both of which will serve to save customers money while
improving the area's air quality and environment."
The following table is a reconciliation of Con Edison's reported
earnings per share to earnings per share from ongoing operations and
reported net income to earnings from ongoing operations for the three
months ended March 31, 2012 and 2011.
Net Income for
Common Stock
Earnings (Millions of
per Share Dollars)
------------------ ------------------
2012 2011 2012 2011
-------- -------- -------- --------
Reported earnings per share and net
income for common stock - GAAP basis
(basic) $ 0.95 $ 1.07 $ 277 $ 311
Less: Net mark-to-market effects of
competitive energy businesses (0.06) 0.08 (18) 22
-------- -------- -------- --------
Ongoing operations $ 1.01 $ 0.99 $ 295 $ 289
======== ======== ======== ========
For the year 2012, the company confirms its previous forecast of
earnings per share from ongoing operations in the range of $3.65 to
$3.85 a share. Earnings per share from ongoing operations exclude the
net mark-to-market effects of the competitive energy businesses.
The results of operations for the three months ended March 31, 2012,
as compared with the 2011 period, reflect changes in the rate plans
of Con Edison's utility subsidiaries and the effects of the milder
winter weather on steam revenues. The rate plans provide for
additional revenues to cover expected increases in certain operations
and maintenance expenses, and depreciation and property taxes. The
results of operations include the operating results of the
competitive energy businesses, including net mark-to-market effects.
Operations and maintenance expenses were higher due to pensions,
other postretirement benefits and healthcare costs, offset in part by
lower operating costs attributable to the milder winter weather in
the 2012 period. Depreciation was higher in the 2012 period
reflecting primarily the impact from higher utility plant balances.
The following table presents the estimated effect on earnings per
share and net income for common stock for the 2012 period compared
with the 2011 period, resulting from these and other major factors:
Net Income
for Common
Stock
Earnings Variation
per Share (Millions of
Variation Dollars)
------------- -------------
Consolidated Edison Company of New York, Inc.
(CECONY) (a)
Rate plans, primarily to recover increases
in certain costs $ 0.12 $ 37
Operations and maintenance expense (0.10) (29)
Depreciation (0.03) (8)
Other 0.02 5
------------- -------------
Total CECONY 0.01 5
Orange and Rockland Utilities (O&R) - 1
Competitive energy businesses (b) (0.13) (39)
Other, including parent company expenses - (1)
------------- -------------
Total variation $ (0.12) $ (34)
============= =============
(a) Under the revenue decoupling mechanisms in CECONY's electric and gas
rate plans and the weather-normalization clause applicable to the gas
business, revenues are generally not affected by changes in delivery
volumes from levels assumed when rates were approved. Under CECONY's
rate plans, pension and other postretirement costs and certain other
costs are reconciled to amounts reflected in rates for such costs.
(b) These variations include after-tax net mark-to-market losses of $18
million or $0.06 a share in the first quarter of 2012 and after-tax net
mark-to-market gains of $22 million or $0.08 a share in the first
quarter of 2011.
The weighted average number of common shares was 293 million shares
and 292 million shares for the three months ended March 31, 2012 and
2011, respectively.
The changes in the energy delivered by the company's utility
subsidiaries, both for actual amounts and as adjusted primarily for
variations in weather and billing days, for the period ended March
31, 2012, as compared with the 2011 period were as follows (expressed
as a percentage of 2011 amounts):
2012 vs. 2011
Actual Adjusted
------------ ------------
CECONY
Electric (3.4) (0.8)
Firm - Gas (15.4) 0.9
Steam (23.4) (1.2)
O&R
Electric (4.3) (2.0)
Firm - Gas (20.6) 2.1
------------ ------------
Refer to the company's First Quarter Form 10-Q, which is being filed
with the Securities and Exchange Commission, for the consolidated
balance sheets at March 31, 2012 and December 31, 2011 and the
consolidated income statements for the three months ended March 31,
2012 and 2011. Additional information related to utility sales and
revenues is available at www.conedison.com (select "Shareholder
Services" and then select "Press Releases").
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.
This press release also contains a financial measure, earnings from
ongoing operations. This non-GAAP measure should not be considered as
an alternative to net income, which is an indicator of operating
performance determined in accordance with GAAP. Management uses this
non-GAAP measure to facilitate the analysis of the company's ongoing
performance as compared to its internal budgets and previously
reported financial results. Management believes that this non-GAAP
measure is also useful and meaningful to investors.
Consolidated Edison, Inc. is one of the nation's largest
investor-owned energy companies, with approximately $13 billion in
annual revenues and $40 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 participates in infrastructure projects.
Contact:
Robert McGee
212-460-4111
SOURCE: Consolidated Edison, Inc.
