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WILLIAMS COMPANIES REPORTS SIGNIFICANTLY IMPROVED THIRD QUARTER RESULTS

 WILLIAMS COMPANIES REPORTS SIGNIFICANTLY
 IMPROVED THIRD QUARTER RESULTS
 TULSA, Okla., Oct. 26 /PRNewswire/ - The Williams Companies Inc. (NYSE: WMB), citing improving earnings capacity driven largely by its major natural gas expansion program, today reported unaudited net income of $18.6 million, or 32 cents per share, for the third quarter that ended Sept. 30.
 For the same period last year, the company reported net income of $5.7 million, or seven cents per share.
 "Our performance validates the fundamental soundness of our businesses and shows that the expansion strategy we have been vigorously implementing is already beginning to drive earnings growth," said Joseph H. Williams, chairman and chief executive officer. "The 123-percent increase in Williams Western Group's operating profit more than offset WilTel's results, which were lower than the third quarter of last year," Williams said. "It's important to note that WilTel showed a significant improvement over the first two quarters of this year, which is a trend we expect to continue."
 Third quarter 1992 revenues were $555 million, compared with $430 million for the same quarter a year ago.
 For the first nine months of 1992, net income was $74.2 million, or $1.44 per share, compared with net income of $62.5 million, or $1.29 per share, during the same period in 1991. Revenues for the first nine months were $1.7 billion, compared with $1.5 billion for the same period in 1991.
 Williams noted several developments:
 Last week, the company announced it filed a registration statement covering units of a coal seam gas royalty trust that could generate up to $197 million. The sale of the units is expected to be completed by year-end.
 Construction of a 433-million-cubic-feet-per-day (MMcfd) expansion of Northwest Pipeline Corp.'s mainline, which began July 27, is on schedule to be in full service in April 1993. Growing demand may require an even larger expansion by the end of 1995.
 Demand also continues to increase for natural gas gathering and processing in southwestern Wyoming and in the San Juan Basin of New Mexico and Colorado. Work is progressing to boost the capacity of Williams Field Services' gathering and processing systems in these areas by some 30 percent, to 575 MMcfd each, before year-end. Further expansion is likely.
 And, the Kern River natural gas pipeline system, which is receiving nearly two-thirds of its supply via Northwest Pipeline and Williams Field Services, operated at full capacity for the entire third quarter. Kern River, 50-percent owned by the company, shipped 700 MMcfd from southwestern Wyoming to southern California. Customers have expressed interest in another 450 MMcfd of capacity by 1994.
 WilTel reported a third quarter operating profit of $11.9 million, compared with $28.5 million in the same quarter last year. Revenues were $194 million vs. $174 million for the quarter in 1991. Results were lower than the same period last year primarily because of lower margins for customer premises equipment, and because the third quarter of 1991 included favorable net adjustments of $6 million.
 Demand for circuits increased 17 percent when compared with the first nine months of 1991.
 WilTel reported an operating profit of $16.1 million for the first nine months vs. $62.1 million for the same period in 1991. Revenues were $554 million, compared with $457 million for the first nine months of 1991.
 Williams said WilTel is completing the complex task of developing a full range of switched services products for the commercial and business marketplace.
 "This effort, coupled with earlier reserves made because of the unforeseen financial restructuring of a large customer, low prices and a sluggish economy, has kept WilTel's financial results lower than we expected when the year began," Williams said.
 "However, WilTel is building momentum in this expanded marketplace. Third quarter operating profit represents almost a three-fold improvement over the first half of the year," he said. "Demand is up substantially for our switched services andcircuits. And, WilTel continues to broaden its ability to compete for a wider spectrum of America's businesses telecommunications needs with leading-edge capabilities that are equal to its competitors' and superior to most."
 Williams Western Group reported a third quarter operating profit of $40 million, compared with an operating profit of $17.9 million in the same quarter a year ago.
 The increase is due to continuing volume growth, primarily from newly constructed facilities. Last year's volume record reported by units of Williams Western was nearly surpassed during only the first nine months of 1992.
 Natural gas gathering volumes increased 84 percent,processing volumes increased 99 percent and mainline throughput increased 14 percent compared with volumes in the third quarter of 1991. For the first nine months, Williams Western had an operating profit of $110 million vs. $77.1 million for the first nine months of 1991, a 43-percent increase.
 Williams Natural Gas Co. reported a third quarter operating loss of $4.8 million, compared with an operating loss of $10.4 million during the third quarter of 1991.
 The improvement from 1991's third quarter was due primarily to higher processing revenue and lower general and administrative expenses.
 Third quarter combined transportation and gas-sales volumes decreased 3 percent from volumes in the same period of 1991 due primarily to lower electric generation demand.
 Operating profit of $21.5 million for the first nine months of 1992 was reduced by an estimated $20 million because of warm first quarter weather. Operating profit for the first nine months of 1991 was $31.9 million.
 Williams Energy Company reported a third quarter operating loss of $500,000 vs. an operating profit of $1.1 million during the same quarter in 1991.
 Combined transportation and gas-sales volumes in the third quarter were 10 percent higher than during the same period last year. Operating profit declined because of lower per-unit gas sales margins, in part reflecting supply disruptions caused by Hurricane Andrew.
 Operating profit was $1.1 million for the first nine months, compared with $9.7 million for that same period last year.
 Williams Pipe Line Company reported an operating profit of $10.8 million in the third quarter vs. $7.4 million in the same quarter of 1991.
 The 46-percent increase is due to a rate increase in May and lower legal and professional fees. For the first nine months of the year, Williams Pipe Line had an operating profit of $28.4 million, 34 percent higher than the $21.2 million for the same period of 1991.
 "The improving financial performance of Williams Pipe Line should be further enhanced by our efforts to increase throughput and diversify sources of supply," Williams said, noting that one recently completed agreement will provide incremental volumes of more than 9 million barrels a year.
 In conclusion, Williams said of the overall company's performance:
 "Growth has allowed us to prosper, even with this year's warm first quarter weather and WilTel's temporary setbacks during the first half of the year," Williams said. "As the benefits of our expansion program continue to build, we are seeing our stock price recover from depressed levels in the second quarter and we remain very enthusiastic about the future performance of our company."
 The Williams Companies, listed on the New York and Pacific stock exchanges under the symbol WMB, is a $4.8-billion corporation based in Tulsa that provides pipeline transportation of natural gas and petroleum products and telecommunications products and services nationwide.
 -0- 10/26/92
 /CONTACT: Jim Gipson of The Williams Companies, 918-588-2111/
 (WMB) CO: The Williams Companies Inc. ST: Oklahoma IN: OIL TLS SU: ERN


GT -- SF003 -- 4799 10/26/92 12:48 EST
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Date:Oct 26, 1992
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