Printer Friendly

PACIFICORP REPORTS EARNINGS

 PACIFICORP REPORTS EARNINGS
 PORTLAND, Ore., Nov. 4 /PRNewswire/ -- PacifiCorp (NYSE: PPW) today


reported third-quarter 1992 earnings per share of 22 cents -- down from 44 cents for the same period a year ago. The year-to-date loss per share in 1992 was 26 cents, including the adverse effects of asset dispositions and restructuring programs of $1.12 per share. Earnings per share for the same period a year ago were $1.26.
 Consolidated quarterly revenues rose 1 percent, to $991 million, as increases in the company's electric and telecommunications businesses were partially offset by decreased revenue from the company's mining and resource development unit as a result of selling certain coal and natural gas assets.
 Electric operations, through Pacific Power and Utah Power, reported third-quarter revenues of $600 million, an increase of 5 percent. The gain stems from a 31-percent, or $29-million, increase in wholesale sales. The 24-percent increase in wholesale energy sold during the quarter was the result of several new and expanded long-term power sales agreements.
 NERCO (NYSE: NER), PacifiCorp's mining and resource development subsidiary, reported revenues of $170 million -- a decrease of $24 million, or 12 percent.
 Coal revenues (excluding intercompany sales for the 1991 period) were down $27 million, or 24 percent, to $85 million as a result of selling certain coal properties.
 Gas and oil revenue was flat at $59 million. The average price for the quarter was $1.70 per mcf, up significantly from $1.28 for the same period a year ago. Total volume, however, was down 28 percent to 25,679 mmcf, reflecting the negative effects of construction, field performance, asset sales and Hurricane Andrew.
 In the telecommunications segment, Pacific Telecom (NASDAQ: PTCM) posted quarterly revenues of $182 million -- up 5 percent, or $9 million. The improvement is largely due to a 13-percent, or $7-million, increase in network access service revenues which rose as a result of higher calling volumes and operating expenses used in setting network access rates.
 Consolidated income from operations was down $56 million, or 22 percent, to $201 million as operating income declines were posted by each of the company's businesses.
 NERCO's decline of $48 million reflected $40 million of provisions for write-downs from sales or anticipated sales of nonstrategic oil and gas and coal properties. NERCO is also continuing to consider the possible sale of its minerals business. Based on the efforts to date and the depressed conditions in the precious metals markets, NERCO expects that a sale of the minerals business, if completed, could result in a pretax loss in excess of $150 million.
 Pacific Telecom's operating income decline of $2 million included a $5-million net provision related to an early retirement program. Pacific Telecom continues to work on efforts to dispose of its ownership interest in International Communications Holdings Inc. (ICHI). Proposals regarding a transaction are currently being evaluated and, as the process is concluded, it may be necessary to reduce the carrying value of Pacific Telecom's investment in ICHI, which was $153 million at Sept. 30, 1992, by a material amount.
 Earnings contribution on common stock for the quarter decreased 47 percent, or $54 million, to $60 million. Approximately $20 million of the $54-million decline relates to asset disposition and restructuring programs.
 Electric operations' earnings contribution for the third quarter 1992 was $75 million -- off 20 percent, or $19 million. The positive effects associated with new and expanded long-term power sales agreements were unable to fully overcome fuel and purchased power expenses which were adversely affected by prolonged regional drought. PacifiCorp's owned-hydroelectric generation was down 26 percent in the third quarter compared to the same 1991 period which itself was lower than the historical average. Low hydro conditions also adversely affected purchased power costs. Reductions in interest income and a $4-million increase in preferred dividend requirements associated with several new issuances of preferred stock accounted for most of the remainder of the earnings decline.
 NERCO's loss for the quarter was $21 million. The loss includes $20 million associated with NERCO's asset disposition program.
 Pacific Telecom's earnings contribution for the quarter declined $18 million from the same period a year ago. However, the 1991 results included a $17-million after-tax gain on the sale of the Chilean cellular telephone operation.
 The average number of common shares outstanding for the quarter rose 3 percent to 268 million shares reflecting the sale of newly issued shares to institutional investors and using new shares in conjunction with the company's dividend reinvestment plan.
 The year-to-date loss stands at $68 million, or 26 cents per share. Included in the results are $297 million, or $1.12 per share, associated with asset disposition and restructuring programs at NERCO and PacifiCorp Financial Services. A.M. Gleason, chief executive officer and president, said, "With all the negative events occurring in 1992, we are accelerating the phase-down of Financial Services, the narrowing of NERCO and Pacific Telecom's focus with the elimination of marginal or nonproductive assets and are thoroughly reviewing our activities to ensure that our carrying values are appropriate."
 PACIFICORP
 And its Consolidated Subsidiaries
 Portland, Ore.

 Three Months Ended Sept. 30: 1992 1991
 Earnings per Common Share (based
 on average number of shares
 outstanding): $ 0.22 $ 0.44
 Revenues:
 Electric Operations $599,900,000 $571,700,000
 Mining and Resource Development 170,400,000 215,900,000
 Intercompany Coal Sales 0 (21,500,000)
 Telecommunications 182,300,000 173,500,000
 Financial Services 38,800,000 45,000,000
 Total $991,400,000 $984,600,000
 Income from Operations (A):
 Electric Operations $199,600,000 $205,100,000
 Mining and Resource Development (27,700,000) 20,700,000
 Telecommunications 34,600,000 36,400,000
 Financial Services (5,600,000) (5,100,000)
 Total $200,900,000 $257,100,000
 Net Income $ 70,500,000 $120,500,000
 Earnings Contribution on Common Stock
 (after preferred dividend requirement)(B):
 Electric Operations $ 74,700,000 $ 93,800,000
 Mining and Resource Development (21,100,000) 300,000
 Telecommunications 6,800,000 24,500,000
 Financial Services (1,200,000) (1,400,000)
 Corporate 600,000 (3,300,000)
 Total $ 59,800,000 $113,900,000
 Average Number of Common Shares 268,266,000 259,725,000
 (See accompanying notes at end of release.)
 PACIFICORP
 And its Consolidated Subsidiaries
 Portland, Ore.
 Nine Months Ended Sept. 30: 1992 1991
 Earnings (Loss) per Common Share
 (based on average number of
 shares outstanding): $ (0.26) $ 1.26
 Revenues:
 Electric Operations $1,739,500,000 $1,646,800,000
 Mining and Resource Development 493,900,000 629,000,000
 Intercompany Coal Sales 0 (60,000,000)
 Telecommunications 518,200,000 535,800,000
 Financial Services 116,600,000 133,000,000
 Total $2,868,200,000 $2,884,600,000
 Income from Operations (A):
 Electric Operations $ 552,400,000 $ 579,400,000
 Mining and Resource Development (280,700,000) 91,100,000
 Telecommunications 100,000,000 119,100,000
 Financial Services (155,900,000) (10,600,000)
 Total $ 215,800,000 $ 779,000,000
 Net Income (Loss) $ (41,600,000) $ 342,600,000
 Earnings Contribution (Loss) on Common Stock
 (after preferred dividend requirement)(B):
 Electric Operations $ 193,700,000 $ 254,500,000
 Mining and Resource Development (165,500,000) 23,200,000
 Telecommunications 34,900,000 55,400,000
 Financial Services (104,600,000) (2,100,000)
 Corporate (26,600,000) (7,400,000)
 Total $ (68,100,000) $ 323,600,000
 Average Number of Common Shares 265,386,000 257,530,000
 (See accompanying notes at end of release.)
 PACIFICORP
 And its Consolidated Subsidiaries
 Portland, Ore.
 (A) Income (loss) before income taxes, interest, other nonoperating items and reclassification of intercompany profits on coal transactions.
 (B) Earnings contribution (loss) on common stock by segment:
 (a) Does not reflect elimination for interest on intercompany borrowing arrangements. Reflects allocation of corporate interest charges.
 (b) Includes income taxes on a separate company basis, except Financial Services, with any benefit or detriment of consolidation reflected in Corporate.
 (c) Amounts are net of preferred dividend requirements and minority interest.
 -0- 11/4/92
 /CONTACT: Mike Nelson, 503-731-2125, or Chris Hunter, 503-731-2090, both of PacifiCorp/
 (PPW PTCM NER) CO: PacifiCorp; NERCO; Pacific Telecom ST: Oregon IN: UTI SU: ERN


SW -- SE008 -- 2710 11/04/92 17:31 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 4, 1992
Words:1368
Previous Article:THE BANK OF NEW YORK RECEIVES APPROVAL FROM FEDERAL RESERVE TO ACQUIRE BRANCHES AND BUSINESS OF BARCLAYS BANK OF NEW YORK, N.A.
Next Article:NERCO REPORTS THIRD-QUARTER RESULTS; UPDATE ON MINERALS SUBSIDIARY
Topics:


Related Articles
PACIFICORP REPORTS FIRST-QUARTER EARNINGS
PACIFICORP ANNOUNCES AGREEMENT TO SELL ITS INTEREST IN NERCO
PACIFICORP REPORTS EARNINGS
PACIFICORP REPORTS SECOND QUARTER EARNINGS
PACIFICORP ANNOUNCES EARNINGS
PACIFICORP EARNINGS
PACIFICORP ANNOUNCES FIRST QUARTER 1995 FINANCIAL RESULTS
PACIFICORP ANNOUNCES SECOND QUARTER 1995 FINANCIAL RESULTS
PACIFICORP REPORTS 1995 EARNINGS; PLANS COMMON SHARE OFFERING
PACIFICORP ANNOUNCES FIRST QUARTER 1996 FINANCIAL RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters