DPL Revises 2002 Earnings Estimate Economic Impact, Market Downturn.Business Editors DPL (Digital PowerLine) An earlier technology for transmitting a 1 Mbps data signal over electric power lines from Nortel Networks. It was developed in the late 1990s, but later abandoned due to implementation difficulties. See broadband over power lines. Inc. (NYSE NYSE See: New York Stock Exchange : DPL) today revised its 2002 earnings estimate. Prior estimates indicated that basic earnings from continuous operations were expected to range from $1.87 to a high of $2.00 in 2002. These estimates assumed a return to normal weather, modest recovery of the economy reflected in retail sales, an increase of wholesale prices and political stability. During the first half of 2002 these improvements did not occur. However, clearly there will be a return to normal weather and economic recovery. Investment income for the first half of 2002 is estimated to be $49 million, which is in line with original 2002 projections. In addition, we believe the going forward earnings for 2003 appear reasonable based on the current economic strength in Europe and the future recovery in the USA. However, the current economic forecasts and political uncertainty in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. has forced another review of our financial assets Financial assets Claims on real assets. . In this region, the continued uncertainty and instability surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the future of the economy, particularly in Argentina, requires a harsh view of current valuations and future return expectations. As a result, DPL will write down its financial assets by approximately $110 million after tax. These valuation adjustments result in financial assets on the balance sheet of $1.0 billion, down from the $1.1 billion at the end of the first quarter. The energy business continues to perform despite reduced demand, that is partially offset by cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. efforts. On the positive side, we have completed our capacity expansion program, are substantially complete on NOx compliance and have sold 900 MW of the 1,100 MW we had available for this summer at an average price of $54 MWH See watt-hour. . Our region had warm weather last week and we are currently experiencing hot weather. Our plants are all operating to plan and with last week's high temperatures, we've set new and higher customer demand charges which will increase revenues over the next twelve months. DPL's 2002 basic earnings per share from core operations, excluding the investment writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of $0.92, is estimated at $0.32 to $0.35 for the quarter ended June 30, and $1.68 to $1.72 for the year. Third quarter is expected to be the strongest of the year, with improvements in both the environment we operate in and continued realizations from the financial asset portfolio. A call to discuss this revision to 2002 earnings guidance is scheduled for Tuesday, July 2, 2002 at 9:00 a.m. Eastern Time. Interested parties can access the webcast conference call real-time on DPL's website at www.dplinc.com in the Company's investor relations Investor relations The process by which the corporation communicates with its investors. section. A replay of the conference call will be available on the website until 9:00 a.m. Eastern Time Tuesday, July 9, 2002. DPL Inc. is a diversified diversified (di·verˑ·s regional energy company. DPL's principal subsidiaries include The Dayton Power & Light Company (DP&L), and DPL Energy. DP&L provides electric services to over 500,000 retail customers in West Central Ohio. DPL Energy operates over 4,000 megawatts of generation capacity and markets wholesale electricity throughout the eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Further information on DPL Inc. can be found at www.dplinc.com.
DPL Inc.
Revised 2002 Earnings Estimate
Supplemental Schedule
7/1/02
($ per share)
Original Earnings Estimate - Low End $1.87
Less: Weather Impact (1) (0.02)
Delayed Economic Recovery (2) (0.04) - (0.02)
Depressed Wholesale Energy Margins (3) (0.09) - (0.07)
Plant Maintenance Extension (0.02)
O&M, General Taxes & Other (0.02)
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Core Earnings Estimate $1.68 - $1.72
Financial Asset Write-downs (0.92) (0.92)
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Revised Earnings Estimate $0.76 - $0.80
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Notes: (1) Reduced retail sales as a result of record mild weather experienced in the first half of 2002. (2) Reduced commercial and industrial sales as a result of delayed economic recovery. (3) Reduced wholesale energy margins due to economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. and weather. |
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