Printer Friendly

PACIFICORP ANNOUNCES THIRD QUARTER RESULTS

 PORTLAND, Ore., Oct. 29 /PRNewswire/ -- PacifiCorp (NYSE: PPW) today reported third quarter 1993 earnings from continuing operations of $95 million, or 35 cents per share, on consolidated revenues of $862 million. Earnings from discontinued operations added an additional $52 million on a one-time basis, or 19 cents per share, bringing consolidated total earnings contribution to $148 million, or 54 cents per share.
 The one-time $52 million gain relates to substantial price appreciation on IDB Communications Group Inc. (IDB) common stock that Pacific Telecom, PacifiCorp's telecommunications subsidiary, received in connection with the closing on Sept. 23, 1993, of the sale of a noncore international telecommunications subsidiary. The gain more than offset the estimated $40 million after-tax loss recorded during 1992, of which $6 million related to the third quarter of 1992. Any additional adjustment to the value of IDB common stock when it is sold in mid-November 1993 will be accounted for as a gain or loss on sale of investment in continuing operations.
 For the year to date, PacifiCorp reported earnings of $337 million, or $1.23 per share, compared to losses of $68 million, or 26 cents per share, in the prior period. These results included earnings from continuing operations of $280 million, or $1.03 per share in 1993, compared to $103 million, or 39 cents per share, in the prior period.
 Consolidated revenues for the third quarter of 1993 rose 5 percent, or $41 million, to $862 million as each of the company's business units posted increases. Electric revenues rose $22 million, or 4 percent, to $622 million on the strength of wholesale electric sales increasing 14 percent, or $17 million. Wholesale sales revenues rose as a result of entering a large 20-year new firm power contract with the Western Area Power Administration on Jan. 1, 1993, increases in energy volumes and prices under terms of existing long-term contracts and increased spot energy sales compared to the same period a year ago. Retail electric revenues rose 6 million, or 1 percent, as increases in commercial and industrial sales offset a slight decrease in residential sales stemming from cooler than average summer temperatures in the company's summer peaking Utah and southeastern Idaho service area.
 Telecommunications' revenue for the quarter was virtually unchanged at $183 million. Favorable effects of access line growth for local exchange companies and increased cellular revenue were offset by decreased long distance network service revenue as a result of a reduced rate base and the effects of lower recoverable expenses.
 Consolidated income from operations for the third quarter 1993 was $238 million, up $10 million or 4 percent, compared to the $229 million reported for the 1992 period.
 The earnings contribution from electric operations for the 1993 quarter was $78 million, an increase of $4 million or 5 percent, from the comparable period last year. Electric operating income decreased $6 million, or 3 percent, as a result of increased pension costs, post-retirement health benefits costs under FAS 106 and purchased power expenses, partially offset by a $22 million increase in revenue. Third quarter 1992 electric utility results also included unusual charges of $3 million.
 Telecommunications' earnings contribution for the third quarter was $12 million, a slight decrease from the comparable period in 1992. In 1993, valuation adjustments to certain noncore investments and a higher federal income tax rate offset the effect of an accrual for an early retirement program in 1992 and access line growth and lower interest expense in 1993 resulting from reduced borrowing levels.
 Other earnings contribution rose to $5 million as a result of interest income relating to a note receivable associated with the 1993 sale of PacifiCorp's mining and resource development subsidiary.
 The average number of common shares outstanding for the quarter was 273.8 million, an increase of 5.6 million shares, or 2 percent, from 1992's level. The increased number of shares stems from 6 million shares of new common stock sold to the public and issuances in conjunction with the dividend reinvestment and employee stock ownership plans.
 Year-to-date 1993 consolidated revenues rose 7 percent, or $159 million, to $2.5 billion with each of the company's business units posting increases. Electric revenues rose $108 million, or 6 percent, to $1.8 billion on the strength of wholesale electric revenues rising 20 percent, or $64 million. Retail electric revenues rose $43 million, or 3 percent, as a result of the return of more average weather conditions in the first half of 1993 throughout the company's seven-state service area relative to that experienced in 1992. In addition, the number of electric customers rose 26,000, or 2 percent. Telecommunications revenue rose 2 percent, or $12 million, to $530 million.
 Year-to-date Electric earnings contribution rose 22 percent, or $42 million, to $235 million as a result of substantially improved operating income primarily related to the return of more normal weather in the first half of 1993 and the effect of cumulative miscellaneous writeoffs and adjustments in 1992 totaling $20 million after-tax, or 7 cents per share. Telecommunications' earnings contribution year-to-date was off $5 million, or 11 percent, primarily as a result of 1992's $8 million, or 3 cents per share, after-tax gain stemming from the sale of a noncore investment, net of the write-down of certain noncore assets. Other earnings improvement is related to $132 million, or 50 cents per share, of special charges associated with the carrying value of certain nonutility assets taken in the first quarter of 1992.
 The average number of common shares outstanding for the 1993 year-to-date period was 272.5 million, an increase of 7.1 million shares, or 3 percent.
 PACIFICORP AND ITS CONSOLIDATED SUBSIDIARIES
 Three months ended Sept. 30, 1993 1992
 Earnings per common share (based on average
 number of shares outstanding):
 Continuing operations $0.35 $0.32
 Discontinued operations 0.19 (0.10)
 Total $0.54 $0.22
 Revenues:
 Electric operations $621,500,000 $599,900,000
 Telecommunications 182,900,000 182,300,000
 Other 57,300,000 38,800,000
 Total $861,700,000 $821,000,000
 Income from operations:
 Electric operations $193,900,000 $199,600,000
 Telecommunications 36,400,000 34,600,000
 Other 8,100,000 (5,600,000)
 Total $238,400,000 $228,600,000
 Net income $157,600,000 $70,500,000
 Earnings contribution on common stock
 (after preferred dividend requirement)(A):
 Electric operations $78,400,000 $74,700,000
 Telecommunications 12,200,000 12,400,000
 Other 4,800,000 (600,000)
 Discontinued operations(B) 52,400,000 (26,700,000)
 Total $147,800,000 $59,800,000
 Average number of common shares 273,818,000 268,266,000
 Nine months ended Sept. 30, 1993 1992
 Earnings (loss) per common share (based
 on average number of shares outstanding):
 Continuing operations $1.03 $0.39
 Discontinued operations 0.19 (0.65)
 Cumulative effect of a change in an
 accounting principle 0.01 -
 Total $1.23 ($0.26)
 Revenues:
 Electric operations $1,847,400,000 $1,739,500,000
 Telecommunications 530,200,000 518,200,000
 Other 155,600,000 116,600,000
 Total $2,533,200,000 $2,374,300,000
 Income from operations:
 Electric operations $578,600,000 $552,400,000
 Telecommunications 103,100,000 100,000,000
 Other 1,800,000 (155,900,000)
 Total $683,500,000 $496,500,000
 Net income (loss) $366,000,000 ($41,600,000)
 Earnings contribution (loss)
 on common stock (after
 preferred dividend
 requirement)(A):
 Electric operations $235,400,000 $193,700,000
 Telecommunications 36,000,000 40,500,000
 Other 8,700,000 (131,200,000)
 Discontinued operations(B) 52,400,000 (171,100,000)
 Cumulative effect of a change in an
 accounting principle(C) 4,000,000 -
 Total $336,500,000 ($68,100,000)
 Average number of common shares 272,514,000 265,386,000
 (A) Earnings contribution (loss) on common stock by segment:
 (1) Does not reflect elimination for interest on intercompany
 borrowing arrangements.
 (2) Includes income taxes on a separate company basis, with any
 benefit or detriment of consolidation reflected in other.
 (3) Amounts are net of preferred dividend requirements and
 minority interest.
 (B) Represents the company's interest in NERCO Inc. and an
 international communications subsidiary.
 (C) Represents the net effect on prior years of the adoption of
 FAS 109, "Accounting for Income Taxes."
 -0- 10/29/93
 /CONTACT: Dick O'Brien, 503-731-2070, or Chris Hunter, 503-731-2090, both of PacifiCorp/
 (PPW)


CO: PacifiCorp ST: Oregon IN: UTI SU: ERN

JH -- SE007 -- 8374 10/29/93 09:26 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 29, 1993
Words:1412
Previous Article:PATRICK J. BAGLEY ELECTED TO ROLLINS ENVIRONMENTAL SERVICES, INC. BOARD OF DIRECTORS
Next Article:THE LEARNING CO.'S 'GIZMOS & GADGETS!' GETS THE WHEELS TURNING
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters