American Water Works Reports Third Quarter Earnings Will be Less Than Last Year.Business Editors VOORHEES, N.J.--(BUSINESS WIRE)--Oct. 6, 2000 American Water Works Company, Inc. (NYSE NYSE See: New York Stock Exchange :AWK (Aho Weinberger Kernighan) A Unix programming utility developed in 1977 by Alfred Aho, Peter Weinberger and Brian Kernighan. Due to its unique pattern-matching syntax, awk is often used in data retrieval and data transformation. ) announced today that cooler summer temperatures and frequent precipitation precipitation, in chemistry precipitation, in chemistry, a process in which a solid is separated from a suspension, sol, or solution. In a suspension such as sand in water the solid spontaneously precipitates (settles out) on standing. throughout the entire eastern half of the nation will adversely affect earnings for the third quarter of this year. Those weather conditions, combined with a three cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. one-time charge stemming from a recent Missouri regulatory decision, will result in earnings for the third quarter of 2000 of approximately 50 cents per share. Earnings for the same quarter last year were 54 cents per share. "While final results for the month of September are not yet available, our review of information to date prompted us to issue this advisory," stated Ellen Wolf, the company's Chief Financial Officer. "The amount of water sold during the third quarter this year will be about 6% less than the amount sold in the same quarter last year," Ms. Wolf continued. The company anticipates that revenues for the third quarter of this year will be about $20 million less than they otherwise would have been had sales volumes not declined. "It also appears unlikely that earnings for the remainder of the year will be sufficient to offset the impact of these third quarter events," Ms. Wolf added. "Our review of operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: confirms that the company's basic business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point remain unchanged," Ms. Wolf continued. "We remain confident that the company will grow earnings and dividends over the long-term. Investors who have held our stock over the years have experienced weather impacts before, and understand that changes in weather conditions do not impact the long-term value of this business." In September, the Missouri Public Service Commission authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: implementation of new rates that will generate $10 million in additional annual revenue for the company's Missouri subsidiary. However, the Commission's order denied recognition of certain investments in water service facilities, which adversely affected third quarter earnings. The company has appealed the Commission's decision. The company will conduct a conference call to discuss this announcement with financial analysts at 11:00 a.m. on October 6, 2000. The call will be broadcast over the web on the company's website. Individuals interested in listening to the call may do so by visiting http://www.amwater.com. An archived copy of that call and the scripted portion will remain on the website until October 16, 2000. This release may contain certain forward looking statements, including, without limitation, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources, which are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. These factors include, among others, the following: the success of pending applications for rate increases, inability to obtain, or to meet conditions imposed for, regulatory approval of pending acquisitions; general economic and business conditions; competition; success of operating initiatives, advertising and promotional efforts; existence of adverse publicity or litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; changes in business strategy or plans; quality of management; availability, terms and development of capital; business abilities and judgement of personnel; changes in, or the failure to comply with governmental regulations, particularly those affecting the environment and water quality; and other factors described in the filings of the Company with the SEC. The Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. |
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