MIDWEST RESOURCES ANNOUNCES EARNINGS
MIDWEST RESOURCES ANNOUNCES EARNINGS DES MOINES, Nov. 2 /PRNewswire/ -- Midwest Resources Inc.
(NYSE: MWR) announced today that earnings for the first nine months of 1992 are substantially below earnings for the like period one year ago, primarily because of unusually mild weather.
Earnings for the nine-month period ended Sept. 30, 1992, are $30.4 million, or 56 cents per average share, compared to $55 million, or $1.10 per average share for the like period of 1991. Earnings for the third quarter, the three months ended Sept. 30, are $11.3 million, or 21 cents per average share, compared to $23.7 million, or 47 cents per average share for the third quarter of 1991. Earnings for the 12-months ended Sept. 30, are $43.9 million, or 82 cents per average share, compared to $65.2 million, or $1.30 per average share for the comparable period one year ago. "The decline in our earnings this year is directly tied to the weather. Throughout our electric and natural gas service territories, temperatures have been abnormally mild, and demand for electricity and natural gas has dropped," said Russell E. Christiansen, chairman and chief executive officer of Midwest Resources. July, August and September were the coolest they've been in the 120 years the state of Iowa has kept temperature records, according to a report from the Iowa state climatologist. The average temperature for the three months was only 66 degrees, the Iowa climatologist reported. For the nine months of the year, mild weather has reduced earnings by $19.1 million, or 35 cents per average share. During the third quarter, the impact of weather reduced earnings by $9.2 million, or 17 cents per average share. Retail sales of electricity declined 8.6 percent during the third quarter compared to the like period in 1991. Higher costs of operations and decommissioning at the Cooper Nuclear Station also reduced nine-month earnings by $5.9 million, or 11 cents per average share. Midwest Resources is a utility holding company headquartered in Des Moines. The utility subsidiary, Midwest Power Systems Inc., has two operating divisions: Midwest Power and Midwest Gas. Midwest Power provides electric service to 412,000 customers in Iowa and South Dakota. Midwest Gas serves 363,000 customers in Iowa, Minnesota, Nebraska and South Dakota. Non-utility investments are operated through Midwest Capital Group Inc. MIDWEST RESOURCES INC. Financial and Statistical Data (In thousands except earnings per share) Three Months Ended Nine Months Ended Twelve Months Ended Sept. 30, Sept. 30, Sept. 30, 1992 1991(a) 1992 1991(a) 1992 1991(a) Revenues $235,494 $252,712 $735,164 $754,750 $1,004,231 $990,612 Net income $11,311 $23,671 $30,417 $54,961 $43,900 $65,158 Earnings/ Average Common Share $0.21 $0.47 $0.56 $1.10 $0.82 $1.30 Average Shares Out- standing 54,635 50,127 54,267 50,057 53,371 50,047 Electric Sales- mWh Retail 2,272 2,485 6,574 6,939 8,792 9,075 Sales for Resale 1,580 1,427 4,134 3,435 5,123 4,155 Gas Sales- MMBtu Retail 5,651 5,932 38,280 41,380 61,151 61,783 Trans- portation 2,753 2,309 8,713 7,717 11,989 10,468 Return on Average Common Equity (percent) --- --- --- --- 6.60 10.53 (a) Revenues and sales for 1991 have been reclassified on a basis consistent with the 1992 presentation. -0- 11/2/92 /CONTACT: J. Sue Rozema of Midwest Resources, 515-281-2250/ (MWR) CO: Midwest Resources Inc. ST: Iowa IN: UTI SU: ERN
BB -- DV008 -- 1689 11/02/92 14:43 EST
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|Date:||Nov 2, 1992|
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