PACIFICORP REPORTS EARNINGS
PACIFICORP REPORTS EARNINGS PORTLAND, Ore., Nov. 4 /PRNewswire/ -- PacifiCorp (NYSE: PPW)
today reported third quarter 1991 earnings of 44 cents per share -- up 1 cent from the same period a year ago. Year-to-date earnings per share of $1.26 declined 7 cents from the same period a year ago.
Consolidated quarterly revenues rose 3 percent, to $985 million, as electric operations and mining and resource development segments both produced quarterly increases. Electric operations reported third-quarter revenues of $572 million, an increase of 6 percent. Both retail and wholesale sales categories produced increases during the quarter. Retail sales rose 3 percent and sales to other utilities rose 24 percent. Retail sales gains reflect improving economic conditions at the company's Utah Power division where sales to industrial and commercial customers increased 6 percent. The wholesale market improvement principally results from new long-term sales to Arizona and California utilities. NERCO reported revenues of $216 million -- an increase of $15 million, or 7 percent, primarily from oil and gas operations. Oil and gas revenues increased $9 million as natural gas production overcame an 18-percent quarter-to-quarter decline in average effective gas prices. Pacific Telecom posted quarterly revenues of $174 million, a decline of 7 percent, or $13 million. The decline is largely due to $33 million of capacity sales on the North Pacific fiber optic cable posted in the third quarter of 1990 as compared with less than $1 million of similar sales in the 1991 period. Strong revenue gains from Telecommunications' core businesses were unable to fully offset the effect of last year's cable sales. Earnings contribution on common stock for the quarter increased 9 percent, or $10 million, to $114 million. Electric operations' earnings contribution rose 17 percent to $94 million. This was primarily due to increased kilowatt-hour sales volume outpacing modest increases in operating expenses. Interest expense and preferred dividend requirements increased during the quarter as a result of new issuances of securities and the refinancing of a previously leased coal-fired power plant. NERCO's earnings contribution for the quarter was $0.3 million compared to $15 million in the prior period. The major factors were depressed natural gas prices, a $7-million restructuring charge and increased interest and depletion expenses related to acquisition of oil and gas properties. Telecommunications' earnings contribution for the quarter rose $10 million to $25 million reflecting an after-tax $17 million gain from the sale of the Chilean cellular telephone operation partially offset by a $3 million of writedown associated with certain noncore investments. The average number of common shares outstanding for the quarter rose 6 percent to 260 million reflecting last year's exclusion of those shares held
for use in acquiring local telephone companies, the March 1991 issuance of 5 million shares and shares issued in conjunction with the company's dividend reinvestment plan.
For the year-to-date, revenues are up 5 percent to $2.9 billion as each of PacifiCorp's three core businesses posted sales growth. Operating income was flat as increases from electric operations and Pacific Telecom were offset by declines at NERCO and financial services. Year-to-date earnings contribution rose 1 percent to $324 million as increased earnings of $17 million and $5 million at electric operations and telecommunications offset a decline of $24 million at NERCO. PACIFICORP AND ITS CONSOLIDATED SUBSIDIARIES Portland, Ore. Three months ended Sept. 30: 1991 1990 Earnings per Common Share (based on average number of shares outstanding): $ 0.44 $ 0.43 Revenues (A): Electric Operations $571,700,000 $539,200,000 Mining and Resource Development 215,900,000 201,100,000 Intercompany Coal Sales (21,500,000) (20,400,000) Telecommunications 173,500,000 186,500,000 Financial Services 45,000,000 50,700,000 Total $984,600,000 $957,100,000 Income from Operations (A)(B): Electric Operations $205,100,000 $182,100,000 Mining and Resource Development 20,700,000 40,400,000 Telecommunications 36,400,000 40,700,000 Financial Services (5,100,000) (1,300,000) Total $257,100,000 $261,900,000 Net Income $120,500,000 $109,400,000 Earnings Contribution on Common Stock (after preferred dividend requirement) (C): Electric Operations $ 93,800,000 $ 80,500,000 Mining and Resource Development 300,000 15,200,000 Telecommunications 24,500,000 14,600,000 Financial Services (1,400,000) (800,000) Corporate (3,300,000) (5,200,000) Total $113,900,000 $104,300,000 Average Number of Common Shares 259,725,000 243,925,000 PACIFICORP AND ITS CONSOLIDATED SUBSIDIARIES Portland, Ore. Nine months ended Sept. 30: 1991 1990 Earnings per Common Share (based on average number of shares outstanding): $ 1.26 $ 1.33 Revenues (A): Electric Operations $1,646,800,000 $1,599,700,000 Mining and Resource Development 629,000,000 572,700,000 Intercompany Coal Sales (60,000,000) (59,500,000) Telecommunications 535,800,000 470,300,000 Financial Services 133,000,000 161,600,000 Total $2,884,600,000 $2,744,800,000 Income from Operations (A)(B): Electric Operations $ 579,400,000 $ 543,300,000 Mining and Resource Development 91,100,000 120,100,000 Telecommunications 119,100,000 102,100,000 Financial Services (10,600,000) 13,700,000 Total $ 779,000,000 $ 779,200,000 Net Income $ 342,600,000 $ 336,300,000 Earnings Contribution on Common Stock (after preferred dividend requirement)(A)(C): Electric Operations $ 254,500,000 $ 237,800,000 Mining and Resource Development 23,200,000 46,900,000 Telecommunications 55,400,000 50,300,000 Financial Services (2,100,000) 1,600,000 Corporate (7,400,000) (15,700,000) Total $ 323,600,000 $ 320,900,000 Average Number of Common Shares 257,530,000 241,818,000 PACIFICORP AND ITS CONSOLIDATED SUBSIDIARIES Portland, Ore. (A) Certain amounts from the prior year have been reclassified to conform with the 1991 method of presentation. These reclassifications had no effect on previously reported consolidated net income. (B) Income before income taxes, interest, other nonoperating items and re-classification of intercompany profits on coal transactions. (C) Earnings contribution on common stock by segment: (1) Does not reflect elimination for interest on intercompany borrowing arrangements. Reflects allocation of corporate interest charges. (2) Includes income taxes on a separate company basis, except Financial Services, with any benefit or detriment of consolidation reflected in corporate. (3) Amounts are net of preferred dividend requirements and minority interest. -0- 11/4/91 /CONTACT: Mike Nelson, 503-731-2125, or Chris Hunter, 503-731-2090, both of PacifiCorp/ (PPW) CO: PacifiCorp ST: Oregon IN: UTI SU: ERN SC -- SE012 -- 0964 11/04/91 17:51 EST
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|Date:||Nov 4, 1991|
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