FARMINGTON HILLS, Mich., Oct. 29 --
SEMCO ENERGY, Inc. (NYSE: SEN) today announced preliminary third quarter 2002
financial results of a net loss of approximately $.38 per share, which is
below the current consensus estimate of a loss of $.31 per share. An
operating loss is typically reported for this quarter due to the seasonality
of the gas distribution business.
The Gas Distribution Business expects to report an operating loss of
approximately $.7 million for the third quarter of 2002 compared to an
operating loss of $2.2 million for the third quarter of 2001. The
Construction Services Business expects to report operating income of
approximately $.6 million for the third quarter of 2002 compared to operating
income of $3.6 million for the third quarter of 2001. The Company also
announced that it expects earnings for the year 2002 to be lower than the
current consensus estimate of $.80 per share.
Marcus Jackson, Chairman, President and Chief Executive Officer said, "The
preliminary results for the third quarter for the Gas Distribution Business
improved over the prior year. However, the preliminary results at the
Construction Services Business were below our expectations and are down from
last year's results. As we noted in the second quarter, increased competition
and reduced capital spending by customers have negatively impacted this
segment of the business as customers have cut back or delayed construction
projects. These delays are due in part to warmer than normal weather in the
Midwest during the past several years. The softness in this market is
expected to continue in the fourth quarter. In addition, operating
performance at several of the business units has been below our expectations."
Mr. Jackson also said, "Through the second quarter, the Company began to
see the positive results of the restructuring activity undertaken since late
last year and I continue to be pleased with the results of the gas
distribution business and believe we have a sound business strategy."
SEMCO will finalize and release third quarter 2002 results and provide
further guidance for 2002 on Wednesday, November 6, 2002. The company will
host a conference call at 9:00 a.m. Eastern Standard Time on Thursday,
November 7, 2002. The call will be webcast and will be available through
SEMCO's website at http://www.semcoenergy.com .
SEMCO ENERGY, Inc. is a diversified energy and infrastructure company that
distributes natural gas to more than 377,000 customers in Michigan and Alaska.
It also owns and operates businesses involved in pipeline construction
services, propane distribution, intrastate pipelines and natural gas storage
in various regions of the United States. In addition, it provides information
technology and outsourcing services, specializing in the mid-range computer
The following is a "Safe-Harbor" statement under the Private Securities
Litigation Reform Act of 1995. This release contains forward-looking
statements that involve risks and uncertainties. Statements that are not
historic facts, including statements about the Company's outlook, beliefs,
plans, goals and expectations, are forward-looking statements. Factors that
may impact forward-looking statements include, but are not limited to, the
effects of weather, the economic climate, competition, commodity prices,
changing conditions in the capital markets, regulatory approval processes,
success in obtaining new business and other risks detailed from time to time
in the company's Securities and Exchange Commission filings.
Source: SEMCO ENERGY, Inc.