Printer Friendly

GPU SHAREHOLDERS HEAR FIRST MESSAGE FROM NEW CEO

 GPU SHAREHOLDERS HEAR FIRST MESSAGE FROM NEW CEO
 MORRISTOWN, N.J., May 7 /PRNewswire/ -- The shareholders of General


Public Utilities Corporation (NYSE: GPU) heard today that, despite a sluggish economy in 1991, the total return on their investment exceeded the nation's electric utility average for the eighth consecutive year.
 In his first address to GPU's shareholders since being named president and chief executive officer in January, James R. Leva told the shareholders that of the 22 financial analysts who actively follow GPU, nearly two-thirds have strong "buy" recommendations on the corporation's stock.
 The shareholders gathered here today in the Morris Museum for GPU's 46th annual meeting.
 A 40-year veteran of the GPU System companies, Leva began his career as a ground hand with Jersey Central Power and Light Company, GPU's New Jersey operating unit.
 "The values that I hold -- integrity, teamwork, service, enthusiasm and respect for others -- are fundamental to any business," Leva said. "To make a real difference in a company, I've found you have to live what you profess."
 Leva said GPU's primary mission will remain providing safe, reliable electric service to its 1.9 million customers.
 "My personal goal is to achieve a standard of performance that establishes our company as one of the most forward-thinking, profitable utilities in the nation," Leva said.
 To achieve that goal, the corporation has seven strategic guidelines that will mold corporate performance for 1992 and beyond:
 -- Meet customers' electric energy needs reliably and responsibly, at a competitive price;
 -- Provide stockholders with a stable and competitive return on their investments;
 -- Continually improve operating efficiency through cost control and strategic allocation of resources;
 -- Earn public confidence by conducting business in a safe and environmentally acceptable manner, as responsible corporate citizens;
 -- Take an active role in the communities the company serves;
 -- Provide a safe, challenging and rewarding work environment for its employees, and
 -- Foster diversity in its workforce.
 "These seven goals shape our business decisions and serve as clear statements of what is most important to us," Leva said.
 He praised the leadership of William G. Kuhns, GPU chairman, who will retire at the end of the month.
 "Bill Kuhns is a hard act to follow. There are not enough words in my vocabulary to describe what Bill has accomplished in the years he led this corporation," Leva said.
 Leva is expected to assume the additional position of chairman of the board after Kuhns retires.
 1991 Financial Results
 Leva told the shareholders that 1991 was a stable year financially for GPU.
 There were fewer than normal new customer additions, increased capital costs, increases in certain purchased power expenses and additional state taxes.
 "But higher sales to residential and commercial customers during the hot periods last summer offset much of the impact of these negatives, and we ended the year with relatively stable results," Leva said.
 Total revenues increased almost 9 percent, to $3.4 billion, compared to a 4 percent increase in 1990.
 Kilowatt-hour sales increased about 2 percent, primarily in the residential and commercial sectors. Net income for 1991 was essentially flat at $276 million as compared to 1990.
 Earnings per share followed the same pattern: $2.49 for 1991 and $2.51 for 1990.
 "Our return on average common equity of 12 percent was right in line with the industry average," Leva said. "In fact, our total return to shareholders -- the increase in the value of the stock, together with dividends -- exceeded the industry average for the eighth consecutive year and for 1991 was more than 26 percent."
 In April 1991, GPU raised the common stock dividend 15 percent, to an annualized rate of $1.50 per share. In the first quarter of this year, GPU again increased the dividend, by almost 7 percent, for an annualized rate of $1.60 per share.
 "Looking forward to our financial performance this year, we see regional economies struggling to shake off recessionary gloom. GPU will be working in our service territories to attract and expand business.
 "We will continue to build on our partnerships with our customers, employees and shareholders to make GPU one of the premier electric utilities in the country," Leva said.
 With 1991 revenues of $3.4 billion, GPU is one of the nation's 20 largest investor-owned electric utilities. GPU owns all of the common stock of three operating subsidiaries: Jersey Central Power and Light Company, Metropolitan Edison Company and Pennsylvania Electric Company.
 Other subsidiaries are GPU Nuclear Corporation, operator of the System's nuclear facilities at Three Mile Island and Oyster Creek; GPU Service Corporation, which provides corporate support to GPU System companies, and General Portfolios Corporation, parent of Energy Initiatives, Inc., which develops and operates nonutility generating facilities.
 /delval/
 -0- 5/7/92
 /CONTACT: John T. Fidler of General Public Utilities, 201-263-6479/
 (GPU) CO: General Public Utilities Corporation ST: New Jersey IN: UTI SU:


MK-MP -- PH014 -- 7511 05/07/92 10:16 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 7, 1992
Words:813
Previous Article:CONSOLIDATED NATURAL GAS REPORTS INCREASE IN FIRST QUARTER EARNINGS
Next Article:/C O R R E C T I O N -- NATURE FOOD CENTRES, INC./
Topics:


Related Articles
GPU CEO SPEAKS TO REGULATORS ABOUT CHANGE IN UTILITY INDUSTRY
FERC ACCEPTS GPU'S INNOVATIVE TARIFF FOR OPEN ACCESS TRANSMISSION
NEW GENERATION SUBSIDIARY PART OF GPU PLAN
GPU LAUNCHES NEW IDENTITY
GPU Board Raises Common Stock Dividend
GPU Announces First Quarter Earnings Increase
Hafer to Focus on Growth and Customers as He Begins Tenure as GPU Chairman and CEO
GPU Board Declares Common Stock Dividend
GPU Reaches Tentative Agreement for Solaris Power Sale
FirstEnergy and GPU Shareholders Approve Proposed Merger.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters