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HAWAIIAN ELECTRIC INDUSTRIES INC. REPORTS INCREASED SECOND QUARTER EARNINGS

                  HAWAIIAN ELECTRIC INDUSTRIES INC.
              REPORTS INCREASED SECOND QUARTER EARNINGS
    HONOLULU, July 16 /PRNewswire/ -- Hawaiian Electric Industries Inc. (NYSE: HE) (HEI) reported net income of $15.7 million for the three months ended June 30, up from $13.1 million in the same period of 1991.  Year-to-date net income was $29.7 million, up from $25.8 million in the first six months of last year.
    For the quarter, earnings per share were 65 cents, up 10 percent from 59 cents per share a year ago.  Year-to-date earnings per share increased 6 percent to $1.24 from $1.17 in 1991.  HEI's results improved in part because of lower financing costs.  The weighted average number of common shares outstanding for the quarter increased by nearly 2 million from the same period last year.
    Robert F. Clarke, HEI president and chief executive officer, said operating income at HEI's principal subsidiary, Hawaiian Electric Co., was essentially unchanged for the three months.  Rising costs were partially offset by an interim rate increase that took effect April 1 for the company's largest utility operation which serves the island of Oahu.  Year-to-date operating income was lower because of increasing costs at two smaller utilities serving the islands of Maui, Lanai, Molokai and Hawaii.  Rate increase requests are pending for both utilities.
    "We were encouraged by the interim rate relief our Oahu utility received early in the second quarter," Clarke said.  "We were further encouraged when the Hawaii Public Utilities Commission issued a final order on June 30, less than one year after the case was filed.  In their order, they also granted additional rate relief which takes effect in steps during the rest of this year when costs are scheduled to be incurred."
    Kilowatthour sales were up more than 4 percent for both the quarter and year-to-date, but were below forecast levels.  The slower sales growth reflects the effect of the mainland recession on Hawaii tourism, Clarke said.
    "The performance of our financial services companies is particularly encouraging," he added.
    Operating income for HEI's financial services business group was up 10 percent for the quarter and 15 percent year to date, because of increased net interest income at American Savings Bank, and premium increases and a lower combined operating ratio at Hawaiian Insurance Group.  Year-to-date interest rate spread at American Savings Bank, the difference between interest earned on assets and cost of funds, narrowed to 3.13 percent from 3.20 percent a year ago.  The narrowing reflects American Savings' pricing strategy of offering higher rates to increase its stable core checking and savings deposit base.
    Hawaiian Electric Industries is a diversified electric utility holding company that delivers essential services to the people of Hawaii through its utility, banking, insurance, maritime freight transportation and real estate development subsidiaries.
          HAWAIIAN ELECTRIC INDUSTRIES INC. AND SUBSIDIARIES
                  Consolidated Statements of Income
                             (Unaudited)
               (In thousands, except per share amounts)
                               Three months         Six months
                               ended June 30,      ended June 30,
                              1992      1991       1992     1991
    Revenues:
    Electric utility       $176,958  $175,090   $350,635  $375,689
    Financial services
     Savings bank            51,149    49,668    102,170    99,604
     Insurance               22,799    22,285     44,566    44,311
    Other                    13,411    13,422     26,331    27,581
      Total                 264,317   260,465    523,702   547,185
    Operating income:
    Electric utility         24,850    24,615     48,073    49,021
    Financial services
     Savings bank             6,580     6,257     13,191    12,439
     Insurance                1,109       764      2,989     1,604
    Other                     1,414     1,166      2,463     1,691
      Total                  33,953    32,802     66,716    64,755
    Interest expense --
     nonfinancial
     services (a)           (10,949)  (11,789)   (21,768)  (23,132)
    Preferred stock
     dividends of electric
     utility subsidiaries    (1,682)   (1,726)    (3,369)   (3,457)
    Allowance for equity
     funds used during
     construction             1,867       883      3,530     1,561
    Income before
     income taxes            23,189    20,170     45,109    39,727
    Income taxes              7,448     7,054     15,376    13,902
    Net income              $15,741   $13,116    $29,733   $25,825
    Earnings per
     common share             $0.65     $0.59      $1.24     $1.17
    Dividends per
     common share             $0.56     $0.55      $1.12     $1.10
    Book value per common
     share (end of period)   $24.70    $24.00     $24.70    $24.00
    Market price per
     common share (end of
     period)                 $39.75    $31.88     $39.75    $31.88
    Weighted average
     number of common
     shares outstanding      24,166    22,268     24,054    22,118
    (a) Net of allowance
     for borrowed funds
     used during
     construction              $570      $292     $1,083      $513
    -0-                        7/16/92
    /CONTACT:  Constance H. Lau, treasurer, 808-543-7384, or Gary S. Sharpe, director-investor relations, 808-543-7385, both 8 -- 9846 07/16/92 08:09 EDT
   a9847 ..m.nr f   bc-Rollins-Truck-earn
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Publication:PR Newswire
Date:Jul 16, 1992
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