GPU Reports Second Quarter Earnings; Reviews Actions to Improve Shareholder Value.Business Editors MORRISTOWN Morristown. 1 Town (1990 pop. 16,189), seat of Morris co., N N.J., on the Whippany River; settled c.1710, inc. 1865. Although chiefly residential, it has diverse manufactures, including electronic products, health and beauty aids, auto parts, and , N.J.--(BUSINESS WIRE)--July 27, 2000 GPU GPU: see secret police. (Graphics Processing Unit) A specialized logic chip devoted to rendering 2D or 3D images. Display adapters contain one or more GPUs for fast graphics rendering. , Inc. (NYSE NYSE See: New York Stock Exchange : GPU) today reported income before non-recurring items for the second quarter of 2000 of $84 million or $0.69 per share, against $106 million or $0.84 per share in the second quarter of 1999. Net income for the 2000 second quarter, after a non-recurring charge of $295 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. , or $2.43 per share on the sale of GPU's Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. electric transmission company, GPU PowerNet, was a loss of $211 million or $1.74 per share. As reported on June June: see month. 30, GPU sold PowerNet to Singapore Power Singapore Power (Abbreviation: SP; Chinese: 新加坡能源有限公司) is a company which provides electricity and gas transmission, distribution services, and market support services to more than a million customers in International, a subsidiary of Singapore Power, for approximately US $1.26 billion. Net income for the second quarter of 1999 was $47 million or $0.38 per share and included a non-recurring charge of $68 million after-tax, or $0.54 per share resulting from a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). order issued to Jersey Central Power & Light Company by the New Jersey Board of Public Utilities The New Jersey Board of Public Utilities (NJBPU) is a regulatory authority in New Jersey charged with the responsibility of seeing that "safe, adequate, and proper utility services are provided at reasonable rates for customers in New Jersey. , and a gain on the sale of the Midlands (now GPU Power UK) supply business of $9 million after-tax, or $0.08 per share. The lower 2000 second quarter income before non-recurring items was primarily due to the impact of electric utility restructuring in New Jersey and Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , which has included GPU's sale of its generation facilities, higher energy costs in Pennsylvania, and lower electric delivery rates charged to customers in New Jersey. For the six months ended June 30, 2000, income before non-recurring items was $215 million or $1.77 per share, against $269 million or $2.11 per share for the first half of 1999. The net loss for the first six months of 2000 was $80 million or $0.66 per share, against net income of $238 million or $1.87 per share in the first half of 1999. The 2000 first half net loss was after the non-recurring charge of $295 million or $2.43 per share described above. Net income for the first half of 1999 was after the non-recurring items noted above, as well as a gain of $28 million after-tax, or $0.22 per share for the portion of the gain on the sale of GPU's interest in the Homer City Generating Station Homer City Generating Station is a large coal-burning power station at Homer City, in Indiana County, Pennsylvania, USA at . It is owned by Edison International and operated by its subsidiary Midwest Generation. related to wholesale operations. "GPU took a number of actions during the second quarter to improve shareholder value," said Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. D. Hafer, chairman, president and chief executive officer of GPU. He noted that during the quarter, GPU: - Completed its acquisition of MYR MYR In currencies, this is the abbreviation for the Malaysian Ringgit. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. Group, a suburban Chicago-based utility infrastructure construction company, for approximately $215 million. MYR, the nation's fifth largest specialty construction company, complements GPU's utility services business and provides a platform for building its non-regulated activities. - Named David C. Brauer president of GPU Telcom Services, Inc., underscoring the fact that telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. is a key building block in GPU's expansion in attractive non-regulated businesses. - Elected Robert N. Pokelwaldt, retired chairman and chief executive officer of YORK York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. International Corporation, to the GPU Board of Directors. Pokelwaldt's wealth of experience in leading companies in highly competitive markets will be valuable to GPU as it moves forward in the era of electric utility deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. . - Joined Pantellos, a consortium of 15 leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. energy and utility companies that will operate and manage an open, independent Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the e-marketplace for the purchase of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. between the energy industry and its suppliers. In addition, the GPU Board of Directors in April increased the regular quarterly common stock dividend by 1.5 cents, or 2.8 percent, to 54.5 cents a share, an indication of its confidence in GPU's ability to build shareholder value going forward. GPU, Inc. (NYSE: GPU), headquartered in Morristown, NJ, is a registered public utility holding company providing utility and utility-related services to customers throughout the world. GPU serves 4.6 million customers directly through its electric companies -- GPU Energy in the US, GPU Power UK in England, and Emdersa in Argentina. It serves an additional 1.4 million customers indirectly through GPU GasNet, its gas transmission subsidiary in Australia. The company's independent power project business units own interests in and operate 14 projects in 5 countries including the US. GPU's 1999 revenues were $4.8 billion and its total assets were $21.7 billion. GPU's other subsidiaries include MYR Group Inc., GPU Advanced Resources, Inc., GPU International, Inc., GPU Nuclear, Inc., GPU Service, Inc. and GPU Telcom Services, Inc. (http://www.gpu.com) PLEASE NOTE: - This second quarter earnings news release and supplemental financial data are available at the GPU website (http://www.gpu.com). - Members of the news media and the public are invited to listen to GPU's conference call with the investment community at 10 a.m. today, Thursday, July 27, by dialing 973 321-2002. Callers dialing this number will be in a "listen only" mode. Please call in no later than 9:55 to assure being transferred into the call by 10 a.m. - The GPU investor conference call is also available as a webcast at the GPU website. A playback Playback could mean:
will be available beginning at 12 noon today through noon tomorrow, July 28, at 402-220-5900, PIN 2387.
GPU, Inc. Financial Summary for Periods Ended June 30, 2000 & 1999
Three Months Ended June 30, (Unaudited) 2000 1999
--------------------------------------- ---- ----
Operating revenues (000) (Note 1) $1,280,374 $892,700
Net income (000) (Notes 2 & 3) $(210,813) $47,262
Basic - Earnings per share (Notes 2 & 3) $(1.74) $0.39
- Average common shares outstanding(000) 121,199 125,701
Diluted - Earnings per share (Notes 2 & 3) $(1.74) $0.38
- Average common shares outstanding(000) 121,314 125,951
Six Months Ended June 30, (Unaudited) 2000 1999
------------------------------------- ---- ----
Operating revenues (000) (Note 1) $2,456,818 $1,961,403
Net income (000) (Notes 2 & 3) $(79,815) $237,981
Basic - Earnings per share (Notes 2 & 3) $(0.66) $1.88
- Average common shares outstanding(000) 121,284 126,670
Diluted - Earnings per share (Notes 2 & 3) $(0.66) $1.87
- Average common shares outstanding(000) 121,389 126,932
Twelve Months Ended June 30, (Unaudited) 2000 1999
---------------------------------------- ---- ----
Operating revenues (000) (Note 1) $5,252,539 $4,151,999
Net income (000) (Notes 2 & 3) $141,218 $659,500
Basic - Earnings per share (Notes 2 & 3) $1.13 $5.18
- Average common shares outstanding(000) 122,696 127,317
Diluted - Earnings per share (Notes 2 & 3) $1.13 $5.17
- Average common shares outstanding(000) 122,875 127,533
Note 1: Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the three, six and twelve months ended June 30, 2000 increased due to the inclusion of: GPU Power UK (the remaining 50% which GPU did not already own); Empresa Distribuidora Electrica Regional, S.A.; and GPU GasNet, all of which were acquired in 1999. Operating revenues for the same periods in 2000 also increased due to the inclusion of MYR Group, which was acquired in April 2000. Partially offsetting these increases was lower operating revenues at GPU Energy primarily due to the impact of electric utility restructuring. Note 2: Earnings for the three, six and twelve months ended June 30, 2000 include a loss of $295 million after-tax, or $2.43 per share, as a result of GPU Electric's sale of GPU PowerNet. Earnings for the twelve months ended June 30, 2000 also include an increase of $8.3 million after-tax, or $0.07 per share, for the net gain on the sales of substantially all GPU Energy's generating assets (excluding Homer Homer, principal figure of ancient Greek literature; the first European poet. Works, Life, and Legends Two epic poems are attributed to Homer, the Iliad and the Odyssey. City which was sold in the first quarter of 1999), related to wholesale operations; and a reduction of the gain on the sale of the GPU Power UK supply business of $2.9 million after-tax, or $0.03 per share. Note 3: Earnings for the three, six and twelve months ended June 30, 1999 include a reduction in income of $68 million after-tax, or $0.54 per share, as a result of the NJBPU's Restructuring Order on JCP&L and an increase of $9.7 million after-tax, or $0.08 per share, for the gain on the sale of the GPU Power UK supply business. Earnings for the six and twelve months ended June 30, 1999 also include an increase in income of $27.8 million after-tax, or $0.22 per share, for the gain on the sale of Penelec's Homer City Generating Station, related to wholesale operations, and the same twelve month period in 1999 includes an increase of $209.3 million after-tax, or $1.64 per share, for the impact of the Settlement Agreements approved by the PaPUC. |
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